decedent estate filing requirement

[TRT11204]

For a decedent estate 1041 return, if the only asset is rental property, and the property operated at a loss, but did receive rental income (greater than $600), is the 1041 still required to be filed?

[Anonymous_ · Accepted solution]

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@TRT11204 wrote:

For a decedent estate 1041 return, if the only asset is rental property, and the property operated at a loss, but did receive rental income (greater than $600), is the 1041 still required to be filed?

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Yes. The estate is required to file a return (Form 1041) if it received gross income for the tax year of $600 or more.

See https://www.irs.gov/instructions/i1041#idm140366311417136

[TRT11204]

Thank you.  There is a slight distinction between a domestic trust and a domestic estate.  The trust must file regardless if the $600 is taxable or not.  Seems like the estate may not be required if no entries on lines 1 - 8 are above $600, or if the total on line 9 is below $600 because the Exemption on line 21 would take taxable income below zero. 

[Anonymous_]

The distinction between trusts and estates is simply that a trust must file if there is any taxable income or if the trust has gross income of $600 or more.

An estate is required to file a return if it has $600 or more in gross income but not required to file if it had, for example, $500 in gross income and $150 of taxable income.