Me and my brother just completed a 1041 for the house sale of my deceased mother (passed in june 2023, house sold in feb. 2024). We have essentially dispersed all of the money, however the irs is holding up my mothers tax refund from 2023 taxes.
As a result we need to keep the estate account open to deposit the check when it (finally) comea.
I recently found out that the net loss on the house sale (we deducted the expenses) wont go through to K-1 until we declare the 1041 final.
I'm assuming we did the correct thing since we need to keep the estate account open, however, it's only to deposit the one check and the account gives no interest.
So my question is should we have checked off that this is not the final 1041? And if so what do we do next year since the eatate will have no income?
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As the trust is not terminated, form 1041 for 2024 should not be marked Final.
For 2025, if the trust has no income-producing assets and has gross income of less than $600, it is not required to file form 1041,
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