Entering a Schedule k-1 for appropriate tax year

[gusterB]

My wife received a schedule K-1 which at the top of the form indicates 2018, but then the prepared entered a tax year on the form for 9/3/18 through 8/31/2019.  I'm told the details on the K-1 should be applied to the 2018 tax year, and I'd need to file an amended return, but distributions from the estate occurred over time (one in 2018 and another in 2019.)  This is the final K-1.

Do I report the details of this schedule K-1 on my 2019 return, since the calendar date entered ends in 2019, or should K-1 details be tied to the receipt of the funds or the date of the form sent to me, e.g. '2018?'

[RobertG]

Fiscal year K-1s flow through to the tax return based on the year-end date. So, in your case, if the fiscal year ended in 2019 you would report the income shown on the K-1 on your 2019 tax return.

[gusterB]

Thanks Robert.  Just one more question.  When the estate files their return, and if they amended the 2018 return and included these details, but I include them on my 2019 return, do you think there is an issue there?  I'm being advised by the estate representative that everything applies to 2018 but that just doesn't sound right.

I'm assuming since I'm following the calendar year on the form, that if the estate made a mistake, I should still be okay, in case I got audited, which should be very unlikely.  (Our tax situation is pretty straight-forward.)

Appreciate the assistance!!!

[RobertG]

No, I don't think there is an issue if you include the details on your 2019 return.

Since you are on a calendar year you report all the K-1 information in the year the estate tax year ends.