topic Re: Assuming that the Form 1041 for the ESTATE is the FINAL F... in Deductions & credits https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1303052#M137108 <P>If your brother had NOL before his passing, that would&nbsp;be reported on the K-1.&nbsp;</P> <P>If the house was inherited at that time, the sale would not be reported on the K-1.&nbsp;</P> <P>If the value increased or decreased from the date of passing until it was sold, that would be capital gains or loss for the person that inherited it.&nbsp;</P> Wed, 11 Mar 2020 02:49:37 GMT KrisD15 2020-03-11T02:49:37Z Estate's 1041: The estate sold inherited real estate (primary home) for a loss. Do beneficiary's K-1s reflect the distribution of the sale proceeds? https://ttlc.intuit.com/community/tax-credits-deductions/discussion/estate-s-1041-the-estate-sold-inherited-real-estate-primary-home-for-a-loss-do-beneficiary-s-k-1s/01/804148#M103193 <P>Background:&nbsp;</P><P>- Using TurboTax Business 2018 for the estate's 1041.&nbsp;</P><P>- The estate sold the inherited primary home real estate for a loss.. i.e. there is no income for the estate to report on the sale.</P><P>Question:</P><P>- Would the K-1s for each beneficiary need to reflect the distribution of the cash proceeds from the sale of the inherited real estate?&nbsp;</P><P>Assumptions:</P><P>- The purpose of the K-1s is to record income that the beneficiaries should include on their tax filings. The purpose is not to record all money transfers from the estate's bank account to the beneficiaries.</P><P>- The beneficiaries also do not owe income tax on the estate's sale of the inherited property which resulted in a loss</P> Sat, 08 Jun 2019 00:32:37 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/estate-s-1041-the-estate-sold-inherited-real-estate-primary-home-for-a-loss-do-beneficiary-s-k-1s/01/804148#M103193 5onTheHill 2019-06-08T00:32:37Z Assuming that the Form 1041 for the ESTATE is the FINAL F... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/804152#M103194 <P> <U> <I>Assuming that the Form 1041 for the ESTATE is the FINAL Form 1041 and assets of the Estate have been distributed in the timeframe of the Form 1041:</I> </U> </P><P>The generated K-1s from the Form 1041 will in fact report any income of the Estate on which the Estate optionally chose not to pay tax but instead distributed pre-tax to the beneficiaries. The same would be true relative to capital loss.</P><P>Therefore, here are some illustrations to demonstrate what happens and how it is reported:</P><OL> <LI>Any expense paid by the Estate but allowable deduction passed to the beneficiaries (such as Executor Fees) - assuming that the beneficiary under TCAJ can deduct!<BR />Also showing how interest income and non-qualified dividend income can be reduced if the allowable expense is partly used to be accounted against that income.&nbsp;&nbsp;<BR />Then, excess allowable deduction passes through on K-1 Line 11A</LI> <LI>Sale of decedent's home where no $250,000/$500,000 exclusion is allowable but as investment property, any capital loss is allowable and any loss or any capital gain is passed through to the beneficiaries on K-1 Line 11C.&nbsp; Alternatively, see the 3rd attachment [page 8, Schedule B of Form 1041, lines 4 &amp; 5] which is an alternative method to report and pass through any capital gains.</LI> <LI>Last attachment:Form 1041 Allocations to Beneficiary K-1&nbsp; Note especially, that the corpus or principal of the Estate, which itself is post-tax, presuming that any residual income in the corpus previously had taxes paid against it on recognition of that income, is passed to the beneficiaries. See page 8 of Form 1041 Schedule B line 9 and line 10, where Line 9 is the reportable Ordinary Income that will show on the K-1 in the respective lines (5, or 6, as an example) but line 10 is the distributed principal but does not appear on the K-1 since it is not reportable income (or loss).</LI> </OL> Sat, 08 Jun 2019 00:32:38 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/804152#M103194 ScruffyCurmudge 2019-06-08T00:32:38Z Thanks so much for your help. When clicking on the 1st &... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-so-much-for-your-help-when-clicking-on-the-1st/01/804157#M103195 Thanks so much for your help. When clicking on the 1st &amp; 3rd attachment, the&nbsp;&nbsp;result is an access denied issue... i.e. the browser returns XML w/ "&lt;Error&gt;&lt;Code&gt;AccessDenied&lt;/Code&gt;...". The 2nd attachment opened correctly. Sat, 08 Jun 2019 00:32:40 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-so-much-for-your-help-when-clicking-on-the-1st/01/804157#M103195 5onTheHill 2019-06-08T00:32:40Z Change your browser or else clear cache - it is a problem... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/change-your-browser-or-else-clear-cache-it-is-a-problem/01/804161#M103196 Change your browser or else clear cache - it is a problem local to your computer.<BR />I used a totally different browser [Firefox] from the one I am using here [Chrome] and signed in with another of my ids - and had no problem whatsoever in accessing the three pdfs - note that the other id used in Firefox is a plain vanilla id - the same as any other taxpayer. Sat, 08 Jun 2019 00:32:41 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/change-your-browser-or-else-clear-cache-it-is-a-problem/01/804161#M103196 ScruffyCurmudge 2019-06-08T00:32:41Z Thanks again for you help. I did not do anything differen... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-again-for-you-help-i-did-not-do-anything-differen/01/804165#M103197 Thanks again for you help. I did not do anything different on my end, but I can access all of the attachments with Chrome now. Fantastic job answering with the attachments. Sat, 08 Jun 2019 00:32:42 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-again-for-you-help-i-did-not-do-anything-differen/01/804165#M103197 5onTheHill 2019-06-08T00:32:42Z you are most welcome https://ttlc.intuit.com/community/tax-credits-deductions/discussion/you-are-most-welcome/01/804170#M103199 you are most welcome Sat, 08 Jun 2019 00:32:44 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/you-are-most-welcome/01/804170#M103199 ScruffyCurmudge 2019-06-08T00:32:44Z Re: Assuming that the Form 1041 for the ESTATE is the FINAL F... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1290664#M136017 <P>My brother passed away and was renting his home.&nbsp; After the tenant's lease expired, we sold the home.&nbsp; The estate final tax return (1041) has a net operating loss carryover that is passed to the beneficiaries on line 11D of the k-1.&nbsp; &nbsp;</P><P>The house sale obviously generated cash.&nbsp; Therefore,&nbsp;I distributed the cash to the beneficiaries.&nbsp; Where should the cash distribution go on the estate's tax return? Or does it, as there is a&nbsp;net operating loss carryover?&nbsp;&nbsp;</P> Sun, 08 Mar 2020 14:46:36 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1290664#M136017 theshark32 2020-03-08T14:46:36Z Re: Assuming that the Form 1041 for the ESTATE is the FINAL F... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1303052#M137108 <P>If your brother had NOL before his passing, that would&nbsp;be reported on the K-1.&nbsp;</P> <P>If the house was inherited at that time, the sale would not be reported on the K-1.&nbsp;</P> <P>If the value increased or decreased from the date of passing until it was sold, that would be capital gains or loss for the person that inherited it.&nbsp;</P> Wed, 11 Mar 2020 02:49:37 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1303052#M137108 KrisD15 2020-03-11T02:49:37Z
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topic Re: Assuming that the Form 1041 for the ESTATE is the FINAL F... in Deductions & credits
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<P>If your brother had NOL before his passing, that would&nbsp;be reported on the K-1.&nbsp;</P> <P>If the house was inherited at that time, the sale would not be reported on the K-1.&nbsp;</P> <P>If the value increased or decreased from the date of passing until it was sold, that would be capital gains or loss for the person that inherited it.&nbsp;</P>
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Estate's 1041: The estate sold inherited real estate (primary home) for a loss. Do beneficiary's K-1s reflect the distribution of the sale proceeds?
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/estate-s-1041-the-estate-sold-inherited-real-estate-primary-home-for-a-loss-do-beneficiary-s-k-1s/01/804148#M103193
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<P>Background:&nbsp;</P><P>- Using TurboTax Business 2018 for the estate's 1041.&nbsp;</P><P>- The estate sold the inherited primary home real estate for a loss.. i.e. there is no income for the estate to report on the sale.</P><P>Question:</P><P>- Would the K-1s for each beneficiary need to reflect the distribution of the cash proceeds from the sale of the inherited real estate?&nbsp;</P><P>Assumptions:</P><P>- The purpose of the K-1s is to record income that the beneficiaries should include on their tax filings. The purpose is not to record all money transfers from the estate's bank account to the beneficiaries.</P><P>- The beneficiaries also do not owe income tax on the estate's sale of the inherited property which resulted in a loss</P>
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Assuming that the Form 1041 for the ESTATE is the FINAL F...
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<P> <U> <I>Assuming that the Form 1041 for the ESTATE is the FINAL Form 1041 and assets of the Estate have been distributed in the timeframe of the Form 1041:</I> </U> </P><P>The generated K-1s from the Form 1041 will in fact report any income of the Estate on which the Estate optionally chose not to pay tax but instead distributed pre-tax to the beneficiaries. The same would be true relative to capital loss.</P><P>Therefore, here are some illustrations to demonstrate what happens and how it is reported:</P><OL> <LI>Any expense paid by the Estate but allowable deduction passed to the beneficiaries (such as Executor Fees) - assuming that the beneficiary under TCAJ can deduct!<BR />Also showing how interest income and non-qualified dividend income can be reduced if the allowable expense is partly used to be accounted against that income.&nbsp;&nbsp;<BR />Then, excess allowable deduction passes through on K-1 Line 11A</LI> <LI>Sale of decedent's home where no $250,000/$500,000 exclusion is allowable but as investment property, any capital loss is allowable and any loss or any capital gain is passed through to the beneficiaries on K-1 Line 11C.&nbsp; Alternatively, see the 3rd attachment [page 8, Schedule B of Form 1041, lines 4 &amp; 5] which is an alternative method to report and pass through any capital gains.</LI> <LI>Last attachment:Form 1041 Allocations to Beneficiary K-1&nbsp; Note especially, that the corpus or principal of the Estate, which itself is post-tax, presuming that any residual income in the corpus previously had taxes paid against it on recognition of that income, is passed to the beneficiaries. See page 8 of Form 1041 Schedule B line 9 and line 10, where Line 9 is the reportable Ordinary Income that will show on the K-1 in the respective lines (5, or 6, as an example) but line 10 is the distributed principal but does not appear on the K-1 since it is not reportable income (or loss).</LI> </OL>
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Thanks so much for your help. When clicking on the 1st &...
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-so-much-for-your-help-when-clicking-on-the-1st/01/804157#M103195
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Thanks so much for your help. When clicking on the 1st &amp; 3rd attachment, the&nbsp;&nbsp;result is an access denied issue... i.e. the browser returns XML w/ "&lt;Error&gt;&lt;Code&gt;AccessDenied&lt;/Code&gt;...". The 2nd attachment opened correctly.
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Change your browser or else clear cache - it is a problem...
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Change your browser or else clear cache - it is a problem local to your computer.<BR />I used a totally different browser [Firefox] from the one I am using here [Chrome] and signed in with another of my ids - and had no problem whatsoever in accessing the three pdfs - note that the other id used in Firefox is a plain vanilla id - the same as any other taxpayer.
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<dc:date>2019-06-08T00:32:41Z</dc:date>
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Thanks again for you help. I did not do anything differen...
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/thanks-again-for-you-help-i-did-not-do-anything-differen/01/804165#M103197
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Thanks again for you help. I did not do anything different on my end, but I can access all of the attachments with Chrome now. Fantastic job answering with the attachments.
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<pubDate>Sat, 08 Jun 2019 00:32:42 GMT</pubDate>
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<pubDate>Sat, 08 Jun 2019 00:32:44 GMT</pubDate>
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<dc:date>2019-06-08T00:32:44Z</dc:date>
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Re: Assuming that the Form 1041 for the ESTATE is the FINAL F...
</title>
<link>
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1290664#M136017
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<P>My brother passed away and was renting his home.&nbsp; After the tenant's lease expired, we sold the home.&nbsp; The estate final tax return (1041) has a net operating loss carryover that is passed to the beneficiaries on line 11D of the k-1.&nbsp; &nbsp;</P><P>The house sale obviously generated cash.&nbsp; Therefore,&nbsp;I distributed the cash to the beneficiaries.&nbsp; Where should the cash distribution go on the estate's tax return? Or does it, as there is a&nbsp;net operating loss carryover?&nbsp;&nbsp;</P>
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<pubDate>Sun, 08 Mar 2020 14:46:36 GMT</pubDate>
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<dc:creator>theshark32</dc:creator>
<dc:date>2020-03-08T14:46:36Z</dc:date>
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Re: Assuming that the Form 1041 for the ESTATE is the FINAL F...
</title>
<link>
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-assuming-that-the-form-1041-for-the-estate-is-the-final-f/01/1303052#M137108
</link>
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<P>If your brother had NOL before his passing, that would&nbsp;be reported on the K-1.&nbsp;</P> <P>If the house was inherited at that time, the sale would not be reported on the K-1.&nbsp;</P> <P>If the value increased or decreased from the date of passing until it was sold, that would be capital gains or loss for the person that inherited it.&nbsp;</P>
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<pubDate>Wed, 11 Mar 2020 02:49:37 GMT</pubDate>
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<dc:creator>KrisD15</dc:creator>
<dc:date>2020-03-11T02:49:37Z</dc:date>
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