Common use of Taxable Year Clause in Contracts

Taxable Year. If an ESBT election is effective on a day other than the first day of the trust’s taxable year, the ESBT election does not cause the trust’s taxable year to close. The ter- mination of the ESBT election (includ- ing a termination caused by a conver- sion of the ESBT to a QSST) other than on the last day of the trust’s tax- able year also does not cause the trust’s taxable year to close. In either case, the trust files one tax return for the taxable year.