Discussion:Tax Withheld on IRA where estate is beneficiary
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| Revision as of 21:37, 6 July 2009 Southparkcpa (Talk | contribs) (I dealt with thi) ← Previous diff |
Revision as of 13:07, 7 July 2009 LSC CPA (Talk | contribs) (That's what I'm) Next diff → |
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| I am waiting for the others to chime in and tell me I am wrong. Happens a lot! (lol)}} | I am waiting for the others to chime in and tell me I am wrong. Happens a lot! (lol)}} | ||
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| + | {{ForumReplyPost|UserID=LSC CPA|Date=7 July 2009|Text=That's what I'm doing - preparing the 1041! I thought that was clear from my post that I'm preparing the 1041 (K-1, Lacerte . . .). I don't want the refund to go to the estate though. I'd prefer that the beneficiaries get their proportional share of the tax that was withheld to be credited to them as tax payments on their behalf. I just don't know if this is something that can be done, or if I have no choice but to have the estate get the refund, and then distribute the refund to the beneficiaries. Just trying to reduce the tax burden on the beneficiaries down the road if I can.}} | ||
Revision as of 13:07, 7 July 2009
Discussion Forum Index --> Basic Tax Questions --> Tax Withheld on IRA where estate is beneficiary
Discussion Forum Index --> Tax Questions --> Tax Withheld on IRA where estate is beneficiary
| 6 July 2009 | |
| Client is an estate. Deceased named his estate as the beneficiary of his IRA (ugh). The executor had 10% withheld from the lumpsum distribution to the estate (their lawyer did not tell them about the options of distributing directly to the beneficiaries of the estate). I am trying to determing if the tax withheld can be allocated proportionally to the beneficiaries. I don't see any provision for that on the K-1, or in Lacerte. I am wondering if this is even possible. I was hoping to be able to have it allocated to if we can do this. Has anyone dealt with this before, and if so, how did you handle this? | |
Southparkcpa (talk|edits) said: | 6 July 2009 |
| I dealt with this (and I still am) except I am the CPA of a beneficiary. In your situation, can't you file a 1041 for the estate. You almost have to for the IRA distribution. Pick up the income from the IRA distribution at the 1041 level , take a deduction for the DNI distributions to the individual beneficiaries and the entire withholding will produce a refund to the estate which you distribute when received.
I am trying to think why that won't work. A 1041 is NOT that big a deal, I think that works. I am waiting for the others to chime in and tell me I am wrong. Happens a lot! (lol) | |
| 7 July 2009 | |
| That's what I'm doing - preparing the 1041! I thought that was clear from my post that I'm preparing the 1041 (K-1, Lacerte . . .). I don't want the refund to go to the estate though. I'd prefer that the beneficiaries get their proportional share of the tax that was withheld to be credited to them as tax payments on their behalf. I just don't know if this is something that can be done, or if I have no choice but to have the estate get the refund, and then distribute the refund to the beneficiaries. Just trying to reduce the tax burden on the beneficiaries down the road if I can. | |
