Discussion:1041 $300, $600, $0 exemption
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Discussion Forum Index --> Basic Tax Questions --> 1041 $300, $600, $0 exemption
Discussion Forum Index --> Tax Questions --> 1041 $300, $600, $0 exemption
| 3 June 2009 | |
| I am working on the initial return of an estate (1041) fiduciary return. During the year there were no distributions to the beneficiary trust but there was income. There is no provision in the Will addressing distribution of income, and state law has no requirement to distribute income. Under these circumstances what would the exemption be: $300 because it is a complex trust or $600?
Next year, when the final distribution is made and the estate closed am I correct in planning for no exemption because in the final year the Fiduciary is not entitled to an exemption? Thank for your input. Sandy | |
| 3 June 2009 | |
| Sec. 642(b)(1): "An estate shall be allowed a deduction of $600." The $100 or $300 deductions apply to trusts. Sec. 642(b)(2) -- Larry Hess, CPA | Albuquerque, NM | |
| 3 June 2009 | |
| Thank you sir and a special thanks for the reference!
Sandy | |
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