Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

In a decedent's estate, when selecting the estate's fiscal…

In a decedent's estate, when...
In a decedent's estate, when selecting the estate's fiscal year, if the first year selected has no taxable income or expense, must that return be filed? Then there would be a second year return containing the entirety of the estate's transactions. In other words, is there a filing threshold for a form 1041 such that we would file no return for the first "stub' year and a full return for the second year, which would also be the final year.
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
3/12/2018
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,555
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is***** am reading over your inquiry. I will respond to you shortly.

Ask Your Own Tax Question

In brief, the form 1041 is required to file if the estate has income of $600 or more during the tax year. SEE BELOW:

----------------------------

Who Must File Decedent's Estate The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:

1. Gross income for the tax year of $600 or more, or

2. A beneficiary who is a nonresident alien. An estate is a domestic estate if it isn't a foreign estate. A foreign estate is one the income of which is from sources outside the United States that isn't effectively connected with the conduct of a U.S. trade or business and isn't includible in gross income. If you are the fiduciary of a foreign estate, file Form 1040NR, U.S. Nonresident Alien Income Tax Return, instead of Form 1041.

REFERENCE SOURCE:

https://www.irs.gov/pub/irs-pdf/i1041.pdf

Page 4 of form 1041 instructions

------------------------------

In closing, my goal is to provide you with the best experience possible! Hopefully, the service that I have provided has earned a 5-star rating! Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave today. Thank you in advance. If you require further assistance, use the reply box and let me know.

Ask Your Own Tax Question
Customer reply replied 1 month ago
You didn't read my question. It had to do with the choice of fiscal year for a decedent's estate. I know what a 1041 is. Please read it and reply.
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,681
Experience: Taxes, Immigration, Labor Relations
Verified

See instructions - page 9 -

https://www.irs.gov/pub/irs-pdf/i1041.pdf

Accounting Periods
For a decedent's estate, the moment of death determines the end of the decedent's tax year and the beginning of the estate's tax year. As executor or administrator, you choose the estate's tax period when you file its first income tax return.

The estate's first tax year may be any period of 12 months or less that ends on the last day of a month.

If you select the last day of any month other than December, you are adopting a fiscal tax year.

.

So far - it is clear that tax period is NOT necessary elected for the first tax year - but when the first tax return is filed.

Thus if the estate doesn't file teh tax return for the first year - and files teh first tax return for the second year only - that election is made on THAT tax return.

.

See also - exemptions

https://www.irs.gov/pub/irs-pdf/i1128.pdf

Do not file Form 1128 in the following circumstances.

Estates -- An estate adopting its first tax year.

.

That actually means if the tax year is adopted for the second tax year because the tax return was not required for the first tax year - form 1128 is needed.

Let me know if that helps.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,681
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,681
32,681 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
The IRS sent me the form 1041-ES quarterly estimated
Hi, the IRS sent me the form 1041-ES quarterly estimated payments for a trust that was dissolved in 2016. There was no income in 2017. What do I do? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Schedule K-1, Form 1041. Sorry. On Schedule K-1, Form 1041.
Sorry. On Schedule K-1, Form 1041. Line 14 Other Information: H, the amount is in parenthesis, does this mean it is a negative $amount. … read more
Carter McBride
Carter McBride
LLM
960 satisfied customers
Wanted to know about foreign tax. I filed tax return in
I filed tax return in India do I need to show India income in fbar form only or do I need to pay tax of foreign income … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Does a nonresident alien student on a F-1 visa who was
Does a nonresident alien student on a F-1 visa who was issued a 1042-s with federal withholdings have to file a state tax return? They were attending school in NYC.… read more
Lev
Lev
Tax Advisor
32,681 satisfied customers
I have a question about 1099 form. I'm a nonresident alien
Hi Pearl, I have a question about 1099 form. I'm a nonresident alien and own a house and rent it to someone else. During this process I did not hire any agent or independent contractor, but I do have … read more
Marcia Mitrano
Marcia Mitrano
MBA
61 satisfied customers
Lane, Can property taxes be deducted on form 1041? Say the
Lane,Can property taxes be deducted on form 1041? Say the decedent paid 12,000 in property taxes. Decedent died on August 1st. Should 7,000 be deducted on 1040 Sch A and left over goes to 1041?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
TRUST RETURN FORM 1041. THE ONLY ASSET (THE DECEDENT'S HOME)
I AM FILING TRUST RETURN FORM 1041. THE ONLY ASSET (THE DECEDENT'S HOME) WAS USED AS A RENTAL PROPERTY FOR 9 YEARS AND THERE IS CAPITAL GAIN. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I'm filling out form 1041 return for an estate. line 22
I'm filling out form 1041 return for an estate. line 22 'taxable income' is a negative number. … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I want to know if items A,, and J on irs form 1041 schedule
i want to know if items A,B, and J on irs form 1041 schedule k-1 need to be on my 1040 form and where on the 1040 they are reported… read more
Lev
Lev
Tax Advisor
32,681 satisfied customers
I want to know if a Form 1041 needs to be filed. The only
Hi. I want to know if a Form 1041 needs to be filed. The only income is about a $20,000 gain on the sale of a house. All of the gain would be wiped out with expenses of the sale. But then there are ot… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,048 satisfied customers
I know nonresident aliens cannot claim education credits,
I know nonresident aliens cannot claim education credits, however can I deduct MBA expenses as unreimbursed employee expense?… read more
Lev
Lev
Tax Advisor
32,681 satisfied customers
I need to file form 1041 for a living trust in the case
I need to file form 1041 for a living trust in the case where both grantors have become incapacitated although still alive. Their trust has passed to the successor trustee, my older brother and I had … read more
Lev
Lev
Tax Advisor
32,681 satisfied customers
I filed form 1041 for a trust and now I have received a
I filed form 1041 for a trust and now I have received a corrected 1099 for the trust. What should I do with this correction?… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,555 satisfied customers
I have a client who needs to file form 1041 for his father's
I have a client who needs to file form 1041 for his father's estate. The estate had $2,000 in div income. Does he have to obtain an EIN from the IRS website or can he use his father's SSN?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
Under what circumstances does one not have to file form 1041
Under what circumstances does one not have to file form 1041 for an irrevocable living trust.? In the past my accountant would enter the income directly on to my 1040 return… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I have a question about Form 1041. Thanks - I set up a
Thanks - I set up a Family Trust in 6/17. I put my house in a trust with two beneficiaries. I didn't sell the house, but I still have to file form 1041? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,048 satisfied customers
Are non resident aliens taxed at the same rates? Are there
Are non resident aliens taxed at the same rates? Are there certain credits/deductions NRAs cannot receive? I notice if I prepare a return both ways, the resident receives a larger refund.… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,048 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x