If anyone could help with some issues I'm having I would greatly appreciate it.
My Questions:
- Can I have an initial and final 1041 at the same time and then end this by turning in my Form 56? or do I need to carry into 2024?
- Do I need to check either of the trust boxes? This is just an estate with a will.
- Is the nominee treatment of 1099-Int and Div correct by going to the estate?
- Schedule B Income Deduction Distribution -How is Line 9 calculated (Income required to be distributed currently) Is that supposed to be the current earnings? and,
- What about line 10 (other amounts paid or required to be distributed) and
- 11-Total distributions: the entire estate was an inheritance/bequest/joint ownership. If we are not supposed to show those items as distributed income, what is left?
Background:
My sister and I are co-beneficiaries with a 50-50 split of my mom's estate. I was a joint owner with my mom on her financial accounts and my sister and I were listed as beneficiaries on her stock holdings with the accounts pre-split. No debt, no real property or anything of consequence that needed appraisals.
I completed Mom's 1040 for 1/1-1/31 last year which included the months’ worth of interest and dividend income + 1 month of Social Security. There was also a capital loss carryover with Zero taxable income.
For the 1041 there were additional stock dividends issued after her death, prior to the transfer of ownership, and interest income that together exceeded $600. There was also a capital loss carryover shown on 1041-Schedule D (no transactions in reporting year).
The 1099's were issued in her SSN, so on the 1040, I entered the amount earned outside the first month as nominee and am carrying the balance to the 1041. I am assuming that can be allocated between my sister and me on the K-1's. (Or should I report the bank interest all under my SSN since I was a joint owner?)
All but one of the cash accounts has been distributed. (the remainder being set aside until final taxes etc. are complete) and the stocks have all transferred, so the distribution seems complete to me and there will not be anything to earn income next year within the estate.
Respectfully in your debt for any assistance you can provide.
