If an estate's investments make income - interest, dividends, gains - and the estate pays the income tax and no distributions to beneficiaries are made the same year, are K1s generated for the beneficiaries.
My first accountant generated K1s for both beneficiaries with "No Reportable Income" on the top and no income entered. Just the beneficiary name and ss#.
My new accountant says we need to generate K1s where all the estate income is split between the beneficiaries evenly even though they did not receive the money yet.
Who is correct? If the first one is wrong we have some fixing to do!
