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How to prepare Form 1041 (Schedule I)
About Form 1041 (Schedule I)
Form 1041 (Schedule I), also known as the "Supplemental Income and Loss" schedule, is a tax form used by estates and trusts to report additional sources of income or loss. This schedule is filed as an attachment to Form 1041, U.S. Income Tax Return for Estates and Trusts. Estates and trusts that receive or accrue income from various sources other than ordinary investments, such as rental properties, royalties, partnerships, S-corporations, or farm activities, are required to complete Schedule I. These additional sources of income or loss must be reported separately from the ordinary income reported on Form 1041. Schedule I provides specific sections for different types of supplemental income or loss categories, allowing the estate or trust to report each source separately. This ensures that the IRS has a clear breakdown of all income or loss items associated with the estate or trust. In summary, anyone filing Form 1041 for an estate or trust that has received supplemental income or loss from various sources, in addition to ordinary investments, must complete and include Schedule I along with the main tax return.
What Is Form 1041 (Schedule I)
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