@aninkling wrote: (1) File a 1041 for 2018 (it will be late, as this is in May) with the capital gains reported via the 1099B with his social on it and we also report the distribution made in 2018. But this is not the final distribution. We file a final 1041 for 2019 with the transactions for 2019 and close the estate.
(2) We not file a 1041 at all for 2018 but file a final 1041 for 2019 and include the capital gains under his social 1099B reported in 2018, as well as all income, etc and distributions.
Do not file a 1041 under your father's social security number. The estate needs its own federal tax ID number (EIN) for which you can apply for online.
See https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n...
If you file a 1041 for the 2018 calendar year, then the return is indeed late at this point. However, you can choose a fiscal year for the estate when you file the initial return for the estate. In that event, the estate's tax year could begin on 11/22/2018 and end on the last day of any month as far out as 10/31/2019.
You might want to consider consulting with a tax professional to deal with this, and other, issues going forward.
