How is the Deferred Sales Trust taxed?

Created by Client Experience Team, Modified on Wed, 15 May, 2024 at 2:25 PM by Client Experience Team

The Deferred Sales Trust is a Missouri business trust taxed as a C-Corp, but it is not taxed at the trust level. The interest earned on the trust and not paid out to the noteholder is expensed in the given year. You receive a 1099 for interest paid out, and your CPA will use Form 1120.

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