@jdfkin wrote:
.....I don’t believe the 65 day rule applies since we are already past that date (assuming the year end is December 2020, correct?). Is it OK to show the distributions that occurred in mid 2021 on the 2020 1041 and generate the K-1s showing the distributions as if they were 2020 distributions?
The 65 day rule (Section 663(b) election) does not apply since you did not make the distributions within the 2020 tax year (calendar year) nor did you make any distributions within the 65 day period after the close of that tax year.
It is not proper to show distributions made to the beneficiaries in mid-2021 on the 2020 K-1s.
Unfortunately, the estate will have to pay any tax due on the 2020 income at this point.
Was there no return filed for the 2019 tax year (since it appears that the decedent passed in September of 2019)?
