Discussion:1041 Cap Gains for Simple Estate
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Discussion Forum Index --> Advanced Tax Questions --> 1041 Cap Gains for Simple Estate
Discussion Forum Index --> Tax Questions --> 1041 Cap Gains for Simple Estate
Death&Taxes (talk|edits) said: | 14 January 2008 |
| Client died 9/06 at age 54. Estate consisted of 148K of stocks, 44K cash and union pension and IRAs. The latter all had named beneficiaries. Beneficiaries were two adult children, and both were co-executors. Assets were distributed by summer of 2007.
In doing this, the stocks were liquidated on one day in April. Amazingly, the stocks were 35K higher. Normally capital gains are part of the corpus, but in this case, can they be distributed to the beneficiaries especially since the estate has been liquidated? | |
| 14 January 2008 | |
| final year of estate they pass through to the beneficiaries | |
| 14 January 2008 | |
| On the final 1041 for the estate I am 99% certain that the cap gain flows to the residuary beneficiaries on a K-1. If the gains were 35K and there were two beneficiaries each would be reporting 17,500 of LTCG on their own returns. Assume you would have either a 1041 for period DOD to 12-31-06; and a second 1-1-07 to close; OR one 1041 for period DOD through no later than 8-31-07. | |
Death&Taxes (talk|edits) said: | 14 January 2008 |
| Thanks: I should have added one item; we do not have a final clearance on the PA-1500, but that has nothing to do with this only fiduciary return. They will pony up any additional taxes due. | |
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