Bob Hoffman Posted April 10, 2009 Report Share Posted April 10, 2009 I'm confused as to why an MI1041 will have a tax liability (like the Fed 1041) if filed not as final return but changes to all zeros if it is a final return. The fed computes a liability on the final. Any MI preparers give me any insight? I've researched the instructions and find nothing on that subject. Quote Link to comment Share on other sites More sharing options...
taxtrio Posted April 10, 2009 Report Share Posted April 10, 2009 If I remember correctly, all income is passed thru to beneficiaries on the final K-1... therefore the 1041 shouldn't be paying taxes in final year... What say you all.. Taxtrio Quote Link to comment Share on other sites More sharing options...
Bob Hoffman Posted April 10, 2009 Author Report Share Posted April 10, 2009 If I remember correctly, all income is passed thru to beneficiaries on the final K-1... therefore the 1041 shouldn't be paying taxes in final year... What say you all.. Taxtrio In this case, the Federal 1041 was finalized by paying tax, not passing taxable income. There were cash distributions but they were of non-taxable funds. Quote Link to comment Share on other sites More sharing options...
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