topic State (GA) - Estate Taxes ? in State tax filing

State (GA) - Estate Taxes ?

robertb345 — Mon, 30 Mar 2020 20:30:01 GMT

I'm executor filing a 1041 for a friend that passed away in 2019. I'm using TT-Bus. It wants me to buy the State software, but I thought in GA, there is no estate tax when you die. Does GA require other filings, cause I did not see on the state web site anything? I would expect the income from the estates 1099(s) that goes to the beneficiaries on the K-1 is how that income gets reported on their state taxes and tax is ultimately paid to the state ?!?

Also if the house is not sold just the title transferred to the daughter who lived there how is it reported on the 1041?

Re: State (GA) - Estate Taxes ?

Anonymous_ — Mon, 30 Mar 2020 21:38:48 GMT

@robertb345 wrote:

Does GA require other filings, cause I did not see on the state web site anything?

Check the link below to the GA DOR web site.

https://dor.georgia.gov/501-fiduciary-income-tax-return

Re: State (GA) - Estate Taxes ?

robertb345 — Tue, 31 Mar 2020 13:37:01 GMT

Well, this site adds to the confusion. It says "No" except for deaths before 2014, but then said estates pay the tax. Since this was only part of the question I asked, I guess I'll input multiple questions and start over.

Re: State (GA) - Estate Taxes ?

Anonymous_ — Tue, 31 Mar 2020 14:09:19 GMT

With respect to your last question (which I missed entirely), the daughter takes the trust's basis for the house that was distributed in kind; it is actually corpus of the trust and does not need to be reported on the K-1 (some would report the value on Line 10, Schedule B).

Also, the income that is reported on federal K-1s typically transfers to the beneficiaries' states of residence and they will usually have tax liability on that basis.