Form 1041 - Estate and K-1

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Subject Author Date Form 1041 - Estate and K-1 Gene Bleuler 03-20-2009  Re: Form 1041 - Estate and K-1 Gene E. Utterback, EA, RF... 03-20-2009  Re: Form 1041 - Estate and K-1 Gene Bleuler 03-20-2009
Posted by Gene Bleuler on March 20, 2009, 12:25 pm Please log in for more thread options I'm filling out the Form 1041 which is the first and last Estate Income Tax return for someone who died in 2007. All monies have been distributed. The estate will be taking all the income-- not allocating any to the beneficiaries. So do I still need to submit Form K-1 with it? -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Gene E. Utterback, EA, RFC, AB on March 20, 2009, 12:37 pm Please log in for more thread options > I'm filling out the Form 1041 which is the first and last Estate Income > Tax return for someone who died in 2007. All monies have been distributed. > > The estate will be taking all the income-- not allocating any to the > beneficiaries. So do I still need to submit Form K-1 with it? Maybe, I would prep and send one even if it had all zeros on it. BUT I must ask, exactly what do you mean by "the estate will be taking all the income"? Does this mean that the estate will be paying all the tax on the income? If so, you should be aware that estates generally pay tax at the highest individual rates once a minimal level of income is reached. So having the estate pay the tax could cost much more than passing the income through to the beneficiaries. Gene E. Utterback, EA, RFC, ABA -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Gene Bleuler on March 20, 2009, 8:02 pm Please log in for more thread options >> I'm filling out the Form 1041 which is the first and last Estate Income >> Tax return for someone who died in 2007. All monies have been >> distributed. >> >> The estate will be taking all the income-- not allocating any to the >> beneficiaries. So do I still need to submit Form K-1 with it? > > Maybe, I would prep and send one even if it had all zeros on it. > > BUT I must ask, exactly what do you mean by "the estate will be taking all > the income"? Does this mean that the estate will be paying all the tax on > the income? If so, you should be aware that estates generally pay tax at > the highest individual rates once a minimal level of income is reached. > So having the estate pay the tax could cost much more than passing the > income through to the beneficiaries. > > Gene E. Utterback, EA, RFC, ABA > Well that's what I was thinking of doing-- figuring the estate (and the beneficiaries) would be more likely to stay "under the radar" and not get an extra hard look, much less an audit. The amount of the estate's net income for 2008 was about $45,000 with 40,000 of this from the gain on an annuity. -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Similar Threads Posted Estate Tax form 1041 question - Please help January 8, 2009, 10:44 pm TaxCut Business & Estate Form 1041 March 27, 2009, 2:57 pm Form 1041, Sch D February 29, 2008, 12:53 pm form 1041 March 5, 2008, 6:55 pm Form 1041 March 30, 2008, 7:11 pm file form 1041? January 19, 2007, 1:01 am Re: 1041 for estate in litigation October 24, 2006, 7:27 am Re: 1041 for estate in litigation October 25, 2006, 6:46 pm 1041 - Tax Return for An Estate February 27, 2007, 10:11 pm estate return (1041) questions February 6, 2008, 9:04 am