1041 estate

[grandmabee]

taxpayer died 11/18/08 so year is 11/19/08-11/18/09. house in estate so on 10/25/09 and had some interest income in 2009

I will file and report the loss on sale of house on the 2009 tax forms but my question is since the final distrubtion did not happen until January 12th 2010 can the loss flow to the k-1's on 2009 ? or Do I have to file another year return for the distr. and loss to carry to the beneficiary?

thanks for any help

[TAXBILLY]

>>taxpayer died 11/18/08 so year is 11/19/08-11/18/09<<

No. You should file two 1041s: A 2008 1041 (11/18/2008 - 10/31/2009) & a 2009 1041 (11/1/2009 - 10/31/2010).

taxbilly

[Pacun]

>>taxpayer died 11/18/08 so year is 11/19/08-11/18/09<<

No. You should file two 1041s: A 2008 1041 (11/18/2008 - 10/31/2009) & a 2009 1041 (11/1/2009 - 10/31/2010).

taxbilly

Do you have to use a full year or you can use a short year in the year of death so you go with calendar year?

[Lion EA]

No. And yes.

You can use a short year ending 31 December for the first year and then calendar years, with a possible short year for the final.

Or, you can use any fiscal year ending any month end that ends before a year from the DOD.

So in your case, returns can end each 31 December or each 31 October. Can they end on any month except November? Not sure. But you do have some flexibility when you file that first return to pick a year that will help you time distributions, postponing them for instance, or giving you time to sell property or to close the estate in the fewest number of returns.

[grandmabee]

OK so I file the first fiscal year showing the sale and the loss stays on the 1041 nothing goes to the k-1.

then I file the final 1041 with the left over loss going to the k-1. If only loss on first 1041 then I don't loss the 3000 carryover correct just like on 1040's if no taxable income you don't use the 3,000.

so the beneficary only gets the final K-1 because that's when the money was distributed.