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On form 1041, capital gains have to be taxed at the estate…

On form 1041, capital gains...
On form 1041, capital gains have to be taxed at the estate level, correct? No distribution deduction may be taken?
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Answered in 1 minute by:
12/28/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,901
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Until the final year of the estate. .. On the final return capital gains can be distributed. this has to do with the concept of DNI (Distributable Net Income).

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If you can get everything done with one form 1041 (not having to do another year's return) you CAN distribute the gain.

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Customer reply replied 7 months ago
In the event things dont get done with the first 1041 and taxes are due on capital gains on estate level. Those gains were taxes were paid will not get distributed on a k-1, correct?

That's correct

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,901
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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