Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I am administrator of my cousin’s estate. I’m seeking advice…

I am administrator of my...
I am administrator of my cousin’s estate. I’m seeking advice on the requirements for filing her personal income tax and her estate income tax. The specifics are She had been living in her parents’ home in Connecticut and caring for them until their death. She sold the Connecticut home in 2017 and then paid cash for a home in Florida. She moved in April 2017 and died two weeks later on May 7, 2017. She was 62 years old. She did not work, drive a car or have health insurance. She was living off of the inheritance from her brother and her parents. Her ONLY income for 2017 was less than $100 of bank interest. I sold her Florida home in March 2018. Additionally, she will be receiving a distribution from her deceased brother’s IRA account of approximately $9000 next month. This distribution will close that account. The finalizing of her approximately $500,000 estate should occur this year, 2018. From research, it is my understanding that since her income was under $600 in 2017 she is not required to file a federal or state income tax return. Please concur and/or comment on this. As for her estate income tax, it will have less than $100 of income, she will fall under the exemption in selling the house but I am not sure on how to handle the taxable event from her brother’s IRA account. I understand that the estate income tax can be filed within a year of her death. This gives a deadline of May 7, 2018. Please provide information on how to proceed with the income tax issues that I have presented as well as any other tax issues that I’m not aware of. Thank you Paul
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
3/19/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,687
Experience: Taxes, Immigration, Labor Relations
Verified

You wrote - Her ONLY income for 2017 was less than $100 of bank interest - that actually means - you are not required to file her final tax return - because her income was below her filing threshold.

However - you may choose to file while that is not required. Your understanding is correct.

Then - I sold her Florida home in March 2018 - that sale transaction is reported on the income tax return for her estate - form 1041 - but because that asset is passed as inheritance - you will use stepped up basis - and will not have any gain.

Still reporting is required.

Additionally, - she will be receiving a distribution from her deceased brother’s IRA account of approximately $9000 next month. - that will be taxable income and will be included into form 1041.

So far we still have to file form 1041.

Let me know if you need any clarification.

Ask Your Own Tax Question
Customer reply replied 1 month ago
Your answer was clear.
please comment on when the deadline is for her 2018 estate income tax return- filing of the 1041

If she passed away on May 7, 2017

you have a choice to select the tax year for the estate

-- If may be a calendar year - ended Dec 31, 2017 - in this case - the due date is April, 17, 2018

-- Or you may choose calendar year - ended on April, 30, 2018 - in that situation - the due date is August, 15, 2018 (he 15th day of the 4th month following the close of the tax year).

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,687
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 1 month ago
Excellent
Thank you
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,687
32,687 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
I had no taxable income for 2017, but am supposed to file a
I had no taxable income for 2017, but am supposed to file a tax return in order to establish I qualified for Premium Tax Credits received through Healthcare.gov. What should I do? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
I recently filed both federal and state taxes but received a
I recently filed both federal and state taxes but received a 1099s from a one time real estate transaction ( sold my primary residence) … read more
abci168
abci168
Principal
27 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
My only taxable income is $2287.10 from IRA distribution. I
My only taxable income is $2287.10 from IRA distribution. I am rated 100% VA disabled. My social security and VA pension are non-taxable. I have no other reportable income. How do I determine if I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
My return indicates an error at State Taxes & Interest
My return indicates an error at State Taxes & Interest worksheet, indicating I have to fill in " 1.b.2" I can not do that because I haven't lived in any state other than FL during 2017. I don't know h… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
I filed my state and federal taxes electronically and then
I filed my state and federal taxes electronically and then realized that I accidentally omitted something that significantly changes my refund from the federal and my payment to the state. I need to f… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 satisfied customers
I received a schedule K-11 form 1041 showing interest
I received a schedule K-11 form 1041 showing interest income, dividend income and qualified dividend numbers. Do I enter these numbers into my 1040? This is from a trust left by my father. … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My wife and I filed separate federal and state returns
My wife and I filed separate federal and state returns because she was living and working in Illinois (separate property state) and could be considered a non-resident due to the safe harbor rule. She … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
A couple is filing their 2017 PA-40 personal income tax
A couple is filing their 2017 PA-40 personal income tax return. They had their first child in 2017. The father sets up a 529 account titled in his name fbo the child. The father contributes 14k into t… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,064 satisfied customers
How do I report income from sale of business interest which
How do I report income from sale of business interest which was classified as good will? I received a lump sum and will receive monthly payments for 5 years … read more
Lev
Lev
Tax Advisor
32,687 satisfied customers
Required minimum distribution from an inherited IRA (income
required minimum distribution from an inherited IRA (income reported on 1099-R) Can a charitable gift prevent/offset the tax on the distribution?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 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 have a S corp. When filing taxes with my personal income,
I have a S corp. When filing taxes with my personal income, shall I file k1 or schedule C or both? How do I claim a real estate professional in the tax return?… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
An estate distributed assets in a CA probate in 2017 and
An estate distributed assets in a CA probate in 2017 and paid fees to its lawyer and executor in 2018.In 2018 an ancillary probate will distribute assets in Florida. Given a presumably lower 2018 esta… read more
Lev
Lev
Tax Advisor
32,687 satisfied customers
Didnt report income from the sale of asset but it wouldnt of
hello. didnt report income from the sale of asset but it wouldnt of changed my taxes for the year as I had a large tax loss for the year. Is there still a penalty for this type of omission? should I a… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,064 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
How do I report inheritance income. How do I report
How do I report inheritance income JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: how do I report inheritance income JA: Is there anything else impor… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 satisfied customers
Will my filing of federal taxes by the April deadline be
Will my filing of federal taxes by the April deadline be according to the current set of laws (e.g. unlimited deduction of state and local taxes) or will the new "reformed" tax bill and its new rules … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,931 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