Schedule K-1 question

[GEBalch]

My father passed away on October 15, 2023.

The estate is in probate (has not been closed), an EIN number has been issued for the Estate, dated 1-18-2024. Taxes were filed for 2023.  I am filing form 1041 this year and have found it to be a challenge. For 2024 I have 1099-INT and 1099-MISC (mineral rights) as income for the Estate which combined is greater than $600.00

Is the beneficiary information in Part II of the schedule K-1worksheet required if this is not the final form 1041?

[Mike9241]

It would seem no income was or should have been distributed to the beneficiary because it's in probate. Thus the beneficiary form is not needed because it should be the estate that pays the tax on the income. 

[DianeW777]

It depends. The estate can choose to pay the tax; however, if you want to distribute the proceeds then you will report the gains on the beneficiaries K-1s.  If the estate pays the tax you should still enter beneficiary information and issue the K-1s, even though they will have all zeros.  

Once the estate probate has completed, then you will enter the appropriate income, disbursements, etc on the K-1s of the beneficiaries. At this time, that would take place in 2025 or later.