Electing Small Business Trusts (1041 LA)
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Hide expandable textIf you code the return as ESBT (Return has only S corporation income) or ESBT (Return has non-S corporation income) on the federal 1041 screen is, any income deemed S corporation income will not appear on the Louisiana K-1 Equivalent. To see the calculation of S corporation income, review the LA ESBT worksheet available in Form view.
Only the non-source income distributed appears on the LA K-1 Equivalent. The trust pays tax on all undistributed non S corporation income and all S corporation income at the usual LA tax brackets and rates. Federally, the S corporation income is taxed at the highest tax rate.
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