Estate Income Tax

[terramcky]

ok what about estate administration fees? I need some deductions! lol 

[M-MTax]

Yeah, those are deductible or the estate can reimburse whoever paid them and then deduct them on the 1041.

[sallywing2001]

Doesn't the end date of the first fiscal year need to end prior to the 12-month anniversary of the death?

[M-MTax]

You can read about the accounting periods here. 

The moment of death determines the end of the decedent's tax year and the beginning of the estate's tax year.

The estate's first tax year may be any period of 12 months or less that ends on the last day of a month. If you select the last day of any month other than December, you are adopting a fiscal tax year.

[sallywing2001]

I understand what you wrote, which was already mentioned earlier.  However, you can't just pick any EOM date.  From what I understand, it has to be the end of the month date prior to the 1 year anniversary of the death.  So, if the DOD is 4/11/2023, the latest FY end date that you could possibly use would be 5/31/24. 

Or am I all wet and not understanding it properly?

[M-MTax]

It would actually end on 3/31/ 24 (the latest 12-month fiscal year).

5/31/24 would be more than 12 months when you count April.