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Posted by blaha on May 21, 2008, 11:56 pm
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Another question for the group.
The deadline is coming up for our estate return. I am expecting more
deductible expenses to occur after the return has been filed.
What is the best or correct course here. Should I take my best guess
at the expected expenses, estimate them, and include them on the
return. Or - should I only list the actually expense the estate has
incurred, and then if the additional expenses after the return has
been filed become significant, fiel an amended return?
As always, thanks for your time.
--
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Posted by Herb Smith on May 22, 2008, 5:51 am
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On May 21, 8:56�pm, bl...@triad.rr.com wrote:
> Another question for the group.
>
> The deadline is coming up for our estate return. �I am expecting more
> deductible expenses to occur after the return has been filed.
>
> What is the best or correct course here. �Should I take my best guess
> at the expected expenses, estimate them, and include them on the
> return. �Or - should I only list the actually expense the estate has
> incurred, and then if the additional expenses after the return has
> been filed become significant, fiel an amended return?
You can always apply for an extension of the due date (6 months, I
believe). This can be an extension to file, to pay the tax, or both.
Many (but not all) estate expenses can be deducted on either form 706
or on form 1041. Funeral expenses can only be deducted on form 706,
but you should have a handle on these within 9 months of DOD.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Drew.Blaha on May 22, 2008, 10:36 am
Please log in for more thread options > On May 21, 8:56�pm, bl...@triad.rr.com wrote:
>
> You can always apply for an extension of the due date (6 months, I
> believe). This can be an extension to file, to pay the tax, or both.
>
> Many (but not all) estate expenses can be deducted on either form 706
> or on form 1041. Funeral expenses can only be deducted on form 706,
> but you should have a handle on these within 9 months of DOD.
>
>
We've already applied for the extension. The problem here is that the
will provides for the estate to pay for transporting household items
to the beneficiary. I intend to rent a truck and drive it across
country with furniture and other items. It certainly seems at this
point that that won't be done until after all of the forms are filed.
So, do I estimate, say $2000, to rent a truck, or do I wait until I
have final numbers and file an amended return?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Drew Edmundson on May 22, 2008, 10:54 am
Please log in for more thread options On Wed, 21 May 2008 23:56:33 EDT, blaha@triad.rr.com wrote:
>Another question for the group.
>
>The deadline is coming up for our estate return. I am expecting more
>deductible expenses to occur after the return has been filed.
>
>What is the best or correct course here. Should I take my best guess
>at the expected expenses, estimate them, and include them on the
>return. Or - should I only list the actually expense the estate has
>incurred, and then if the additional expenses after the return has
>been filed become significant, fiel an amended return?
>
>As always, thanks for your time.
Some can be estimated and some can't. I would recommend
hiring a tax professional with estate experience if the
estate has to file Form 706. This is typically not a DIY
project. Certainly an estate with a value large enough to
require filing should be able to afford a tax professional.
If you are talking about a Form 1041 then you can use only
actual expenses paid or accrued (if the estate is on the
accrual method).
--
Drew Edmundson, CPA
Cary, NC
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Stuart Bronstein on May 22, 2008, 11:05 am
Please log in for more thread options > blaha@triad.rr.com wrote:
>
>>Another question for the group.
>>
>>The deadline is coming up for our estate return. I am expecting more
>>deductible expenses to occur after the return has been filed.
>
> Some can be estimated and some can't. I would recommend
> hiring a tax professional with estate experience if the
> estate has to file Form 706. This is typically not a DIY
> project. Certainly an estate with a value large enough to
> require filing should be able to afford a tax professional.
I'll certainly agree with that. As a tax and estate attorney I used to
do 706's years ago. But these days they are so much more complex that
I won't touch it, but always bring in a qualified CPA or EA.
Stu
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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