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dmpmama1
New Member

If my Dad passed away in March but 1099 is for the entire year how do I enter the interest?

How do I divide the interest for the entire year between my Dads final tax return and the estate tax return?
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tagteam
Level 15

If my Dad passed away in March but 1099 is for the entire year how do I enter the interest?


@dmpmama1 wrote:
How do I divide the interest for the entire year between my Dads final tax return and the estate tax return?

For the 2019 tax year, you can divide the total annual interest paid (and reported on the 1099) by 365 to get the daily rate and then multiply that daily rate by the number of days your Dad was alive in 2019. The balance left over, of course, would be attributable to the estate.

View solution in original post

2 Replies
tagteam
Level 15

If my Dad passed away in March but 1099 is for the entire year how do I enter the interest?


@dmpmama1 wrote:
How do I divide the interest for the entire year between my Dads final tax return and the estate tax return?

For the 2019 tax year, you can divide the total annual interest paid (and reported on the 1099) by 365 to get the daily rate and then multiply that daily rate by the number of days your Dad was alive in 2019. The balance left over, of course, would be attributable to the estate.

View solution in original post

fanfare
Level 15

If my Dad passed away in March but 1099 is for the entire year how do I enter the interest?

IRS Pub 559 --

"If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return.

Income in Respect of a Decedent

All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.

How To Report

Income in respect of a decedent must be included in the income of one of the following.

  • The decedent's estate, if the estate receives it.
  • The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
  • Any person to whom the estate properly distributes the right to receive it."
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