Is an income distribution deduction required on a ...
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Is an income distribution deduction required on a final 1041 or can the estate pay the entire tax owed?.

I am filing the final 1041 for the estate.  All funds have been distributed in 2018. Can I choose to have the estate pay the tax rather than pass the liability on to the beneficiaries?

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Level 15

Retirement tax questions

" Can I choose to have the estate pay the tax rather than pass the liability on to the beneficiaries?"

 

No, not if all funds were distributed in 2018 and your final 1041 for the estate covers that tax year.

 

The distribution you made in 2018 carries with it distributable net income (DNI) which would be taxable to the beneficiary(ies) who received the distribution.

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