Form 1041 Estate Tax Return

[jwckt]

how do I get to form 1041 in Turbotax 

[DoninGA]

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@jwckt wrote:

how do I get to form 1041 in Turbotax 

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To complete a Form 1041, U.S. Income Tax Return for Estates and Trusts you will need the Business Edition - https://turbotax.intuit.com/small-business-taxes/

The Business Edition can only be installed on a Windows based personal computer, not online or on a Mac.

The Business Edition cannot be used to complete a personal tax return, Form 1040.

[DaveF1006]

To file an 1041 Estate Tax Return, you will need to purchase the  Turbo Tax Business software as this is not a return you can file in your personal tax return.

[ErinEve]

Do I have to file a 1041? I'd like to avoid having to, if possible. 

I am executor of my grandma's estate. They house just sold for FMV. So The house proceeds count as $600 income?

The only other asset is a small non-interest earning account.

If I have to file, can I do it myself or is it better to hire a CPA?

[tagteam]

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@ErinEve wrote:

I am executor of my grandma's estate. They house just sold for FMV. So The house proceeds count as $600 income?

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Technically, a return might not be required since, definitionally, income would be the actual gain, if any, and not merely the gross proceeds. However, there is no way the IRS (or any taxing authority) would know if there is any gain, and the quantity, unless the transaction is reported on a return (i.e., you have to report the proceeds from the sale and the basis).

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@ErinEve wrote:

I am executor of my grandma's estate.....If I have to file, can I do it myself or is it better to hire a CPA?

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You may get varying opinions on this question but, as an executor, you have a fiduciary duty to the beneficiaries. If you have absolutely no experience in the area of estates and accounting and income tax principles for estates, then you would be well advised to hire a tax professional. At least, you will have far less legal exposure if you do so.

[highflight77]

how do i fill out my mother's estate 1041

[tagteam]

@highflight77 

You need to provide more details and/or ask more specific questions.

Are you using TurboTax Business?

[Irene2805]

I'm sorry for your loss!

For an estate/trust return (1041)  you will need TurboTax Business.  You can visit the following link to purchase the program: TurboTax Business.  

Form 1041, U.S. Income Tax Return for Estates and Trusts, is required if the estate generates more than $600 in annual gross income. For more information, please see this IRS article:  Deceased Taxpayers – Filing the Estate Income Tax Return, Form 1041

TurboTax will take you through an interview to prepare the business return, similar to the personal (1040) products.

As part of preparing the 1041 return, TurboTax will prepare K-1 forms for each beneficiary.  You will need to enter the information from the K-1 into your personal 1040 return.  

@highflight77