Hello, I've read enough about Distributions to Beneficiaries (from a Decedent Estate) to make my eyes bleed.
All I want to know is whether it is OPTIONAL for the Estate to report a distribution to a beneficiary, or whether the Estate can choose to consider the entirety of said distribution as a gift/inheritance.
The estate has 80K worth of Distributable Net Income. A distribution of 100K was made to the beneficiary. It was not a required distribution. Although it may cost us a little more in taxes, it is more convenient for the Estate to pay the tax on the DNI than for the beneficiary to take it on. Thoughts? -Thanks
P.S. The following thread suggests that the Estate can choose to consider the distribution a gift. Thoughts?
Solved: Form 1041 for simple estate says taxes are due. Can the estate pay the tax if the income has...
