Skylane
Level 11
Level 11
‎04-26-2023 12:46 PM

This is  an initial and final  1041 decedents estate YE 3/31/23.    All assets were disposed of during the year with no gain due to stepped up basis.    The Estate received about $5500 INT 

Normally, I would show the INT as DNI and pass it to the heirs on K1s.   Executor  would prefer to pay the tax on the INT at the estate level (so the 6 heirs do not have to amend their 2022 returns. 

Any issues? 

If at first you don’t succeed…..find a workaround
0 Cheers
Reply
sjrcpa
Level 15
‎04-26-2023 12:47 PM

If the YE is 3/31/23, the K-1 items go on the beneficiaries' 2023 tax returns.


Ex-AllStar

View solution in original post

Reply
IRonMaN
Level 15
‎04-26-2023 01:16 PM

Hopefully those 2023 returns won't have to be amended quite yet 😜


Slava Ukraini!
Reply
Frustrated-in-IL
Level 8
‎04-26-2023 02:19 PM

Charge $5500 to prepare return.  Believe an estate can use accrual method.  Problem solved.

Reply
Skylane
Level 11
Level 11
‎04-26-2023 02:37 PM

Some days I think my brain flies south for the winter....  guess it's time to start thinking about heading north again....     wouldn't hurt if I read the dates on the k1

If at first you don’t succeed…..find a workaround
Reply
sjrcpa
Level 15
‎04-26-2023 02:51 PM

No worries. I know it happens to me sometimes.


Ex-AllStar
Reply