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gig3491
Returning Member

Trust 1041

Beneficiary died in Mar 2019.  Trust had income after death and all investments sold after death.  How do I file for the trustees portion on income and losses on investments?  Do I use K-1 (1041)?

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Trust 1041

5 Replies

Trust 1041

 

Trust 1041

Income earned and received after the date of the death is reported on Form 1041, not Form 1040. [By the way that is a key point that does occur when the income was earned before the date of death-  covered in another question] Form 1041 does as @Anonymous_ told you does require the purchase of the separate Windows/10-based desktop program.  Please be aware that the Business program does not have the "Import" feature that exists in the 1040 program that allows you to import from investment companies (brokers, banks) the tax data of Form 1099s.  This must be entered through other means, mostly manually.

The cost of having a tax preparer create the Form 1041 for a simple return where income is only interest and dividends, and not investment property, which would include the sale of the formerly owned personal residence of the decedent, may run as low as about $500 to as much as $1,500.  It is not priced the same as preparing a Form 1040.


As an example how to start the process of preparing the Form 1041, please see attached examples:

  • Form 1041 Trust (or Estate) - Starting out creating a Trust Tax Return
  • Simple Trust/Estate Form 1041 Tax Return_Records

As the type of income or the existence of relevant paid expenses arises, or issues on distributing the income to the beneficiary become more complex, more questions may arise

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

Trust 1041

 

Trust 1041

The example was not meant to be the complete filing.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

Trust 1041

 

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