TAXMAN Posted April 29, 2022 Report Share Posted April 29, 2022 TP deceased. Administrator cashes in IRA(600K) puts into estate checking account. Administrator pays Heirs 300K. No other distributions. Heirs pay tax on their 300K. Who pays tax on remainder? Not a final 1041 being filed as off this date. I think the estate on form 1041 owes the tax. What say you? Quote Link to comment Share on other sites More sharing options...
mcbreck Posted April 29, 2022 Report Share Posted April 29, 2022 If there is distributable net income that is not distributed, the 1041 would owe the tax. You can't just delay paying the tax but you can delay distributing the money. 1 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted April 30, 2022 Report Share Posted April 30, 2022 mc is correct, the estate will pay tax on the money it kept. It may have some deductions though, like probate or attorney fees. 1 Quote Link to comment Share on other sites More sharing options...
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