How should past accumulated income and gains be handled?
A. The trust will not pay Ohio income tax on such gains. However, if the tax on trust expires as scheduled, then starting with the taxable year beginning in 2005 the beneficiary receiving such income and gains may be required to pay Ohio income tax on such amounts. See ORC section 5747.01(A)(6). 10. Q. Is Ohio going to recognize the stepped-up basis for assets as of 1/1/2002? A. No. Ohio law does not allow for such an adjustment. 11. Q. Can the trust use the Ohio form IT-1140, Pass-through Entity and Trust Withholding Tax Return, to report trust income from real estate? A. A trust should use Ohio form IT-1140 only with respect to the trust’s distribution of income and gains to the extent the income or gain is attributable either to real estate located in Ohio or to tangible personal property located in Ohio. Ohio’s enactment of an income tax on trusts does not affect the use or filing of Ohio form IT-1140. On the other hand, the trust must use Ohio form IT-1041, the annual fiduciary in
