Tax Notes has published IRS e-mailed advice that provides guidance on the taxation of an electing small business trust (ESBT). According to the e-mail, taxation of an ESBT is contingent on form of the assets it holds under section 641(c).
See Tax Analysts: "IRS Addresses Taxation of Electing Small Business Trust," 2009 TNT 227-58, November 30, 2009
Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal.

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