Discussion:When to report interest on 1041

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Kevinh5 (Talk | contribs)
(???)
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PBinNJ (Talk | contribs)
(Thank you Barbar)
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Revision as of 23:03, 8 June 2009

Discussion Forum Index --> Basic Tax Questions --> When to report interest on 1041
Discussion Forum Index --> Tax Questions --> When to report interest on 1041

PBinNJ (talk|edits) said:

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.

Kevinh5 (talk|edits) said:

8 June 2009
you need the monthly statements to determine the correct interest to report. If cash basis, it is pro-rated based on when it is actually posted to the account (i.e. some months more, and some less based on interest rate and balances).

that's why the 'accounting' is required before preparing a return

Kevinh5 (talk|edits) said:

8 June 2009
'a 1041 that matches the 1099-s is wrong'

as I always say

Kevinh5 (talk|edits) said:

8 June 2009
even if to myself

Kevinh5 (talk|edits) said:

8 June 2009
that is, when I'm not saying something equally as elucidating

like

'It's better to light one candle than to curse the darkness.'

I say that quite often.

PBinNJ (talk|edits) said:

8 June 2009
I understand but isn't the IRS looking to match the 1099 with what is reported on the 1041?

Kevinh5 (talk|edits) said:

8 June 2009
your point?

that the IRS wants you to do tax returns wrong?

Or that you might want to attach an explanation.

Belle (talk|edits) said:

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.

Blrgcpa (talk|edits) said:

8 June 2009
It goes on 2009. Your 2008 return was filed prior to receiving the 1099.

Kevinh5 (talk|edits) said:

8 June 2009
???

PBinNJ (talk|edits) said:

8 June 2009
Thank you Barbara and Belle.
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