claudetcb
Level 3
07-01-2020
08:47 PM
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Very simple: Up to date of death, income, and expenses, are reported on the 1040; after date of death, it gets reported on the 1041. If you have a taxable 706, income reported as a decedent becomes a subtraction on the 1040; and expenses in respect to a decedent becomes an addback on the 1040, with the exception of funeral expenses, which are only a subtraction on the 706.
I would include a footnote on the 1040 in how you arrived at the income, or expenses, reported on the 1040.