topic Are payments that are suspended during probate considered "income" in a Form 1041 in Investors & landlords

Are payments that are suspended during probate considered "income" in a Form 1041

Rates Payer — Sat, 21 Feb 2026 22:52:48 GMT

The payments of Mom's royalty income ($450) were suspended in 2025 upon her death during probate of the estate. They were paid to me as her only heir in 2026 after the rights were transferred to me.

Do the payments suspended during probate need to be reported as income on the estate's 2025 Form 1041?

Re: Are payments that are suspended during probate considered "income" in a Form 1041

DianeW777 — Sat, 21 Feb 2026 23:16:31 GMT

No. They payments were paid directly to you as the beneficiary in 2025 and were not income received by your Mom. The royalty payment(s) should be reported on your tax return. You can use the information below to enter your royalty payments. Select to report them on Schedule E.

Depending on the type of royalty, you may be entitled to a depletion allowance. Commonly 15% of gross income for oil/gas, often simpler, but not allowed for timber. TurboTax will calculate this automatically depending on the type of royalty you select.

Re: Are payments that are suspended during probate considered "income" in a Form 1041

Rates Payer — Sun, 22 Feb 2026 00:18:22 GMT

Thank you but one correction: I received the royalties in 2026 (not 2025). So I don't think I declare them as my income until 2026 return. Am I right?

Re: Are payments that are suspended during probate considered "income" in a Form 1041

CatinaT1 — Mon, 23 Feb 2026 17:15:00 GMT

Yes, you would report it in the year it is received.

Re: Are payments that are suspended during probate considered "income" in a Form 1041

Rates Payer — Tue, 24 Feb 2026 19:04:10 GMT

Thank you!