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Posted by D. Stussy on February 7, 2008, 1:34 am
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> My mother died last June, and I'm executor for her estate. Total value
> of the estate is ~$400K, consisting of a house (willed to my brother)
> and various interest-bearing accounts (distributed equally, per the
> will.) Nothing is contested.
>
> Q1: It took about 3 months from her death before I got her accounts
> closed and the money transferred to the estate account. The 1099's for
> these accounts show all earnings as being in my mother's name. (The
> total amount comes to ~$10K.) Can I just include these 1099 amounts in
> her final return? Or does the portion earned after her death need to be
> treated as 'estate income'?
After date of death -> estate income. On final return: NO.
> Q2: Aside from possible interest income (per above), the only other
> estate income is a $7K IRA distribution. Altogether, this seems like it
> should be simple enough that I could do the 1041 myself (using, say TC
> Business). Any comments on this? Mostly, is it a matter of (carefully)
> getting numbers in the right boxes, or are there critical decisions to
> be made, that only someone familiar with the IRC would know?
1) The IRA may have a designated beneficiary. If so, that person reports
the amount and the IRA custodian should have reported this to the
beneficiary.
2) Check for any past forms 8606 filed. There may be a post-tax basis in
the IRA that affects the income taxable amount. Additionally, if any
post-tax basis exceeds what is recovered from the IRA in a TOTAL
distribution, there may be a deduction for the unrecovered amount that needs
to go on the final 1040.
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