Single 1099-R received for decedent after death, questions about form 1041

[eburch29]

Hi, 

My mom passed away in August of last year (2023).  I am her executor and sole beneficiary.  I think I generally understand how the 1041 works, but I have a couple of questions about it.  First, I don't fully understand when an estate would be considered closed and therefore if this is the final return or not.  She had some investment accounts for which I was named beneficiary, so those are straightforward enough, but there was nothing else that could possibly generate any more income in the future.  So, wouldn't this be the final return or is there some defined process by which an estate is closed?

My other question is whether or not is it is ok to simply report this income and this income only, without any additional deductions (like fiduciary costs) or anything like that , on the form 1041 (along with the associated K-1 that I would be issuing to my self)?  I was thinking I would just report the amount on the 1099 as the income, reduce it to zero by taking the full amount as a distribution, report it on my personal return, and call it a day?  

Finally, this income would be reported on line 8 of the 1041 and Box 5 of the K-1, correct?

Thanks very much!

[DianeW777 · Accepted solution]

Yes, this would be the final return.  If the estate does not meet the filing requirement of $600 taxable income then a return is not required and you can certainly finalize the 1041 return in 2023 if you know there will be no other income for the estate in 2024.

Yes, you can simply put the income on the K-1 to distribute to yourself. Line 8 is the appropriate location for income from a 1099-R. On the K-1, it should go over to Box 5 as nonbusiness income at which time it flows to your tax return.

You've got it all covered and I send my sympathies.

[eburch29]

Great, thank you so much for the help, and for the kind words...