Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Estate Return

TP82
Level 3

One of my clients is working with his siblings on his deceased mother's estate.  The house and estate won't be settled until 2020 and there are 4 siblings involved.  They cashed in US Savings Bonds and received several thousand dollars in interest for 2019.  The 1099-INT was issued in the estate's TIN.  I figured the attorney would report and pay taxes when they did the final 1041 but they gave the 1099-INT and told them they would need to take it to their tax preparer and report it in 2019.  I am not that familiar with 1041's so here are my questions.  Can I just do the 1041 and let the "estate" pay the taxes instead of giving each sibling a K-1?  Do I have to do K-1's and list each sibling?  If the estate "pays" the balance due, then will it be deducted in 2020 on the final 1041?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
Anonymous
Not applicable

If the estate cashed the bonds (meaning it was done after her date of death) then the estate would pick up the income. Remember-  you can do a fiscal year return for an estate. 

If the bonds were cashed before DOD, then they should go on her final 1040.

View solution in original post

3 Comments 3
Anonymous
Not applicable

If the estate cashed the bonds (meaning it was done after her date of death) then the estate would pick up the income. Remember-  you can do a fiscal year return for an estate. 

If the bonds were cashed before DOD, then they should go on her final 1040.

TP82
Level 3

The bonds were cashed after her DOD.  She passed away in Sept 2018 so it is taking a while to settle but it looks like it will be very soon this year.  Not sure if a single return will do it.  Can I skip the K-1's?

0 Cheers
BobKamman
Level 15

Even if the bonds were cashed after DOD, the interest could go on the decedent's final return, which might be the least messy way of handling it.