Discussion:1041 k1
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Discussion Forum Index --> Basic Tax Questions --> 1041 k1
Discussion Forum Index --> Tax Questions --> 1041 k1
| 7 April 2009 | |
| I have a 1041 k1 that shows an amount in box 10, estate distribution. The preaprer tells me that it represents the federal, state and gift taxes paid by the estate. Is this an allowable deduction on the 1040 if there was no income distributed from the estate (only proceeds were distributed) Appreciate you help. | |
| 7 April 2009 | |
| Sandy, there might be a problem with the 1041. It should only contain the Federal estate tax (paid on the 706) for items of IRD that were distributed to the beneficiary. The deduction is taken pro-rata as the beneficiary receives the IRD over time. The deduction is taken on Sch A not subject to the 2% of AGI rule.
You'd have to get a calculation of what items of IRD were taxable on the 706, what was distributed to your client, and the amount of tax on those items in order to check the calculation. | |
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