Yardley CPA Posted April 6, 2008 Report Share Posted April 6, 2008 Client brings in estate information along with a form 7004 extension of the estate. Tax year dates: 8/7/06 through 7/31/07. Based on these dates, should the initial 1041 should be a 2007 return? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 6, 2008 Report Share Posted April 6, 2008 You would use the 2006 form because that when the fiscal year of the estate began. The return's orig due date was Nov 15, 2007 and should have been extended for 6 mos until May 15, 2008. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 6, 2008 Author Report Share Posted April 6, 2008 You would use the 2006 form because that when the fiscal year of the estate began. The return's orig due date was Nov 15, 2007 and should have been extended for 6 mos until May 15, 2008. Thanks so much, JKLCPA. Appreciate it. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 6, 2008 Report Share Posted April 6, 2008 That 7004 was filed, right? Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 6, 2008 Author Report Share Posted April 6, 2008 That 7004 was filed, right? Yes...it was. The only income for the period was $136 in interest. Expenses: Accountant fees of $250. So the net is a loss. That was all the activity. There are three sisters who are beneficiaries and equally share income/expense. I don't prepare 1041's normally. Can I show a loss on the return? I believe I still prepare the K-1's showing the interest income? Does the accountant fees flow to the K-1 as well? Any thoughts would be appreciated. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 7, 2008 Report Share Posted April 7, 2008 The estate shouldn't even have to file since its income is < $600, unless one of the sisters is a nonresident alien. Estates get a $600 exemption on the 1041. Since an extension has been filed, the IRS might be looking for a return. It would prob be easier to file than have to correspond later to explain the extension request & non filing. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 7, 2008 Author Report Share Posted April 7, 2008 The estate shouldn't even have to file since its income is < $600, unless one of the sisters is a nonresident alien. Estates get a $600 exemption on the 1041. Since an extension has been filed, the IRS might be looking for a return. It would prob be easier to file than have to correspond later to explain the extension request & non filing. Thank you again. All the sisters are residents in good standing. I will file the 1041 just to avoid future questions. Do I also need to file K-1's Quote Link to comment Share on other sites More sharing options...
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