Technical topics regarding tax preparation.
Amend final 1040 for decedent
I prepared a 2018 1040 for taxpayer who died on 10/22/2018. I included all of the information reported on the 2108 1099DIV and 1099 INT on the 2018 return. Now the taxpayer's lawyer wants me to do a fiscal year 1041 for the taxpayer's estate (FYI, taxpayer is my mother). I've prepared other 1041 returns for trusts and they were done on a calendar year basis.
Since I included income (dividends and interest) that were received after the date of death, must I amend the 2018 tax return. Or, is it OK to prepare the 1041 on a calendar year basis as I previously intended to do?
Can I make a note on the proper schedule that some information was previously reported on the 2018 1040.
Thank you for your clarification.
Kathy, the income earned post-death should be reported on the estate 1041, not the decedent's 1040. Fiscal year 1041's are probably more common than calendar year 1041's for estates and perhaps the attorney has a reason...timing, complexity, beneficiaries, etc...the legal and admin fees may wipe out the 2018 income resulting in less overall tax.
I would amend and go fiscal, the caveat being I don't have all the details.
Thank you Howards. Do I need to request corrected 1099s for 2018 or can I just report the correct amounts?
Just report the correct amounts. Payor issued the 1099s based on the info they had. i.e they were not timely informed of the death.
Agree with sjrcpa but I would report the total amounts listed on the 1099's and reduce (correct) what needs to be adjusted as "nominee" interest/dividends etc.
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