topic Got K1 from a 2016 estate. It has bond interest $8,000. Must amend my 2016 return and pay interest and penalties? Can I claim on 2019 return instead? No distribution yet in After you file

Got K1 from a 2016 estate. It has bond interest $8,000. Must amend my 2016 return and pay interest and penalties? Can I claim on 2019 return instead? No distribution yet

hobbyman93 — Thu, 06 Jun 2019 08:28:44 GMT

Executor just filed the estate tax return. I have yet to receive any cash distribution from the estate.

What year is on the K-1---2016 or 2018?

IreneS — Thu, 06 Jun 2019 08:28:45 GMT

What year is on the K-1---2016 or 2018?

No. Don't amend your 2016 return yet. There are two is...

IreneS — Thu, 06 Jun 2019 08:28:47 GMT

No. Don't amend your 2016 return yet.

There are two issues to consider:

For what year is the executor filing the estate return?

If they are filing a 2016 return for the estate, then amend your 2016 return when you get the distribution.
If they are filing a 2018 return, include the K-1 in your 2018 return (see below).

When will the funds be disbursed?

Contact the executor of the estate and ask when he/she plans to distribute the bond interest. It should be soon since they filed the estate tax return saying that the distribution has already been made.
If you receive the distribution before you file your 2018 return, include the K-1.
If you haven't received the distribution by the time you file your 2018 return, do not include the K-1 information in your return. You can amend your 2018 return when you receive the funds.

Thank you for responding. I have not yet received a dist...

hobbyman93 — Thu, 06 Jun 2019 08:28:48 GMT

Thank you for responding. I have not yet received a distribution but wonder if the interest charged will continue to build until I pay the tax, interest and penalty.