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1041 Return for Estates

Level 1

I am filing a 1041 for an estate that has <$600 income from date of death to end of year but has deductions that would be beneficial to beneficiaries.  The taxable income is <$0.  Are there any issues with filing the 1041 and the related K-1 for the beneficiaries to receive the tax benefits of these deductions?  Thank you

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2 Replies 2
Level 11

Is it a final return?  Deductions, if they flow through to beneficiaries, are only available on termination.  

But I'm not sure IRS has decided whether these survive as miscellaneous itemized deductions for beneficiaries.  They said in Notice 2018-61 that they are thinking about it.  Someone else might have something more recent.  Bueller?  Anyone?

Even if the deductions are allowed, I would check with the beneficiaries on whether they need them.  If there are only a few, and none itemizes, don't waste your time or your client's money.  

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Level 1

Thank you.  This is the final return.  It would be a benefit for the beneficiaries.

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