Final estate tax return

Forum|Forum|5 years ago
April 10, 2021
8 replies
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I am using a fiscal year to file the first and hopefully final estate tax return for my father in law. He died in June 2020. The only income was from the sale of his home in March 2021. This sale resulted in a loss. We are also distributing all proceeds from the sale to the beneficiaries in April 2021 to close the estate. The only deductions are legal fees that occurred in 2020 and 2021, mortgage interest and property taxes that were paid in 2021.

Do I have to file a 2020 estate tax return and then wait until next year to file again to report the sale of the home OR since I am using a fiscal year, can I report the sale of the home and file a final return now, along with K-1s for the 2021 distributions?

TurboTax Business Windows

Anonymous_

Level 15

@ej416 wrote:
.....since I am using a fiscal year, can I report the sale of the home and file a final return now, along with K-1s for the 2021 distributions?

Since this is the estate's initial return, you can select a fiscal year that, for example, begins on the date of death in June of 2020 and ends on May 31, 2021.

You can therefore include the sale in March of 2021 (and distribution in April) on this initial, and final, return.

ej416Author

Level 2

I have a follow up question. When I viewed the K-1s, it says that the income was distributed in 2020 when it actually was distributed in 2021. Is this a glitch with TurboTax or is this correct given the fiscal year final estate tax filing?