First and final Michigan 1041 for a decedent estate
This is a simple decedent estate 1041. Decedent was a Michigan resident. The only asset was a stock that was sold, no earnings from the stock. It was long term capital gain. The gain distributed to 3 beneficiaries, 2 Michigan residents, one Georgia resident. The federal 1041 shows no tax because everything flowed to the beneficiaries. This is a first and final return. The Michigan 1041 shows a small amount of tax owed by the estate. That does not seem correct because the beneficiaries have to claim their portion of capital gain reported on the K-1, which becomes part of their AGI. Why would the estate have to pay an estate tax AND the beneficiaries pay tax from the reported CG on their K-1s? It seems that the Michigan 1041 should be just an informational return with no tax due because everything is flowing to the beneficiaries. What box have I failed to check in ProSeries to make the Michigan 1041 report the same way as the federal 1041?
