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
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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.


The more I know the more I don’t know.

View solution in original post

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IRonMaN
Level 15
‎04-26-2023 01:16 PM

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


Slava Ukraini!
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Frustrated-in-IL
Level 9
‎04-26-2023 02:19 PM

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

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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
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sjrcpa
Level 15
‎04-26-2023 02:51 PM

No worries. I know it happens to me sometimes.


The more I know the more I don’t know.
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