Filing a 1041

Forum|Forum|5 years ago
March 17, 2021
3 replies
24 views

Can you chose you tax year? Client died on 5/28/2020. Do I file a 1041 05/29/2020 to 12/31/20250 or can I chose to file a return 05/29/2020 to 5/28/2021

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BobKamman

Level 15

Is there an estate, and will it have income? The final 1040 covers income through 5/28/20. The 1041 for the estate can use a calendar year, or it can use a fiscal year that includes the first day there is income. However, it must end on the last day of the month. So your choice would be as late as April 30, 2022.

R

RG62_2Author

Level 3

Thank you so much. I have filed the final 1040 which went through 5/28/2020. Should I do a short year for the estate 5/29/20 -12/31/2020 or would it be better to elect the fiscal year and file 5/29/2020-04/30/2021.? The estate has rental income and interest income making the income for 2020 over the $600.00 amount requiring filing. The estate sold land March 2021 which is to be divided among the five children. I am not sure if the estate will be closed by 4/30/202, but there would not be anymore rental income and probably the interest would be less than $600.

I really appreciate your help. I don't normally file 1041's and it has been 30 years since I was in school.

You have been a big help!

Thank you! Thank you! Thank you!.

sjrcpa

Level 15

' Should I do a short year for the estate 5/29/20 -12/31/2020 or would it be better to elect the fiscal year and file 5/29/2020-04/30/2021.? "

We can't really say which is better but those are the choices. I tend to go with fiscal years for estates. It gets it out of tax season. If there is K-1 income it gets pushed to the next year for the beneficiaries.

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

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