Estate Tax Return Filing

[taxguessingguy]

Hi there!

Need some help.

The estate owner died 2017, with an estate worth $1 million or less. Never filed estate tax eversince.

My question is, "Is it required to file estate tax return in 2017?"

Many thanks!

[IRonMaN]

“Over $1 million” is kinda broad since a billion dollars is over 1 million.  If you mean the estate was just over $1 million, no - an estate return wasn’t required.

[dkh]

@IRonMaN   I think you misread OP question.... it says $1million or  less

[IRonMaN]

I could have sworn it said something else before I posted.

[joshuabarksatlcs]

@IRonMaN I swear you're correct.  I was going to write something like "how much above a million"... also.

But then, I had to first clean the floor because gravity got my whole cup of coffee earlier this morning.  Last night, my dancing partner kept stepping (up-ish) on the bottom of my feet again and again.... 

Seriously folks, while an estate is NOT required to file a F706, consider the suitability of filing to reserve the DSUEA.  However, the estate (of the 2017 passing) likely has missed the boat because the election has to be timely filed, even with the relief per Rev. Proc, 2017-34.

I've been trying to convince widows and widowers to hire me to file F706 regardless of the decedent's estate value "just to reserve the DSUEA" in order to lower their own estates' estate tax should they hit the lottery.  So far, my rate of success is still about the same as hitting the lottery.  

[taxguessingguy]

Appreciate your answer!

It appears that they need not file the 706 since it's below the threshold. However, they need to file 1041 because the estate generated income above $600.

I'm quite confused whether this would be a joint filing or a separate filing of 1041. The wife died last Dec 2015 and the husband Dec 2017. The husband and wife had properties owned separately. They also had properties owned jointly. These properties are to be distributed to their children. The agreement, however, specifically indicates which properties (are to be distributed) along with the name of the beneficiaries.

Should I prepare 2 returns? For 2015 (Wife) and 2017 (Husband)? Or should I just make one joint return in 2017? Any thoughts are highly appreciated. Thanks!😊 

[taxguessingguy]

Appreciate your answer! It appears that they need not file the 706 since it's below the threshold.

However, they need to file 1041 because the estate generated income above $600. I'm quite confused whether this would be a joint filing or a separate filing of 1041. The wife died last Dec 2015 and the husband Dec 2017. The husband and wife had properties owned separately. They also had properties owned jointly. These properties are to be distributed to their children. The agreement, however, specifically indicates which properties (are to be distributed) along with the name of the beneficiaries.

Should I prepare 2 returns? For 2015 (Wife) and 2017 (Husband)? Or should I just make one joint return in 2017? Any thoughts are highly appreciated. Thanks!‌‌ 

[sjrcpa · Accepted solution]

There is no such thing as a joint estate. Each estate files a 1041 for each year that it had income. Usually best to file in the final year, too even if no income so excess deductions on termination can be passed out to the beneficiaries.

[taxguessingguy]

Great! Thanks!