RLR170
New Member

1041 is for more than $600 after death before distribution to beneficiaries, but it starts on Date of Death, and rest of year prior to death is on final 1040, yes?

Parent died end of Jan2015. Assets were not transferred to beneficiaries, per will, till April. Investments increased value from DoD till distribution, then THAT increase is considered income (long or short term) and is taxable on the 1041, yes? But prior to Death, SocSec and some annuity/pension was received and indicated on Final 1040 & state.  All correct so far? Then the 1041 will show on the K-1 Forms the funds that were inherited and passed thru to beneficiaries...is that also correct. So there may be some Estate Taxes (fed & state) on 1041 from Date of Death till funds transfer, and Final 1040 and state taxes paid for the part of year PRIOR to death...all correct?  Estate is well under $1M so no taxable estate.