Discussion:When to report interest on 1041
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Discussion Forum Index --> Tax Questions --> When to report interest on 1041
| 8 June 2009 | |
| Client is an estate with 8/31 fiscal year end. We have a 2008 1099INT. Does it get picked up on the estate's return for year ending 8/31/09 or is it prorated between 8/31/08 and 8/31/09? Thanks. | |
| 8 June 2009 | |
| I understand but isn't the IRS looking to match the 1099 with what is reported on the 1041? | |
| June 8, 2009 | |
| The 1099 is issued on a calendar year; a 1041 is seldom prepared on a calendar year - meaning that matching is virtually impossible. Same deal with C corps, which is why ( I think) 1099's don't have to be issued to corporations....yet. | |
| 8 June 2009 | |
| It goes on 2009. Your 2008 return was filed prior to receiving the 1099. | |
Msmith7305 (talk|edits) said: | 12 June 2009 |
| PBinNJ -
The interest on the 2008 1099 must be broken into 2 periods. That interest which was earned for the period 1/1/2008 through 8/31/2008 would go on the estate return for the year ended 8/31/2008 (the 2007 estate return). The interest earned for the period 9/1/2008 through 12/31/2008 would go on the estate return for the year ended 8/31/09. You would also include on this return the interest earned for the period 1/1/2009 through 8/31/2009 (which will be a part of the 2009 1099 you get in 2010). The blanket statement that it goes on 2009 (which is the estate's 2008 tax return by the way) is only correct IF no interest was earned prior to 9/1/2008. Makes absolutely no difference whatsoever when you receive the 1099. | |
| 12 June 2009 | |
| Msmith, if you'll read the history tab you'll find that PBinNJ isn't interested in the correct answer, just the easiest answer. Which of course is always to follow Barbara's advice. | |
Msmith7305 (talk|edits) said: | 12 June 2009 |
| Kevin -
Never used the history tab before. Why are all your posts that are in the history missing from the discussion? | |
Death&Taxes (talk|edits) said: | 12 June 2009 |
| Maybe Kevin knows that old saying about leading horses to water? | |
| 12 June 2009 | |
| Kevin,
Where did we go wrong? I acknowledge that you are an exceptional contributor to this forum but you completely misread me. I love this forum because it helps me immensely. I work alone so this forum is so good for me. I never ask a questions without researching it first. I guess your one line answers don't seem to connect with me. I would like to contribute, but, frankly, you intimidate me. | |
| 12 June 2009 | |
| I'm really not an ogre, more of a cuddly teddy bear, PB. I do try to help, now and again, on this forum, and would never intentionally mislead anyone here.
Anyways, the reason that I removed my posts, Msmith, was that I had provided the answer to PB, and as he states, obviously my responses didn't connect with him. Thus he acknowledged an incorrect answer that Barbara gave (surprise there, I know) but not the correct answer that I had given. I was offended, but figured that he valued simplicity over accuracy. | |
| 12 June 2009 | |
| Cuddly, I don't value simplicity over accuracy. Sister Mary Lucy (5th grade) would never approve. Let's bury it and start over. I apologize. | |
