My father passed away on May 30, 2019. I'm preparing his Form 1041 as his executor.
The estate has received income in both 2019 and 2020 in the form of interest, dividends, and from the sale of real estate. I am ready to file the 1041, distribute the estate, and close the probate.
Can I choose a fiscal year ending April 30, 2020, and file just one return using 2019 forms? Or do I need to file one for the income received in 2019, and then a final return using 2020 forms for the income received in 2020?
Thanks!
If this is the first return you will be filing for the estate, you can mark the return an initial and final return and designate an appropriate tax year (including a fiscal year).
See https://www.irs.gov/instructions/i1041#idm140366338181456
If this is the first return you will be filing for the estate, you can mark the return an initial and final return and designate an appropriate tax year (including a fiscal year).
See https://www.irs.gov/instructions/i1041#idm140366338181456
Thank you so much!
One more related question, which might be a stupid question, but I'll ask it anyway: I won't be receiving the 1099-DIV forms from the 2020 dividends until early 2021. I know the values from the brokerage account statements, and my guess is I can use those numbers, correct, rather than waiting for the 1099-DIVs to issue?
Thanks again. I really appreciate your help.
Yes, but you should be prepared to receive correspondence from the IRS for a mismatch the following year (i.e., since a tax reporting statement will issue for which there will be no return filed).
I was afraid of that. Might be better to file an initial return this year and a final return next year, just to keep things clean.
Thanks so much for your help!