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Old 03-11-2018, 12:46 PM
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Join Date: Mar 2018
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Do I need to file a 'Final' 1091 Estate?

Hi Everyone,
Here's the situation:
My Uncle passed away July 2016. I'm the executor and have filed the 2016 1041 'Initial' return with no pass thru to beneficiaries (all taxes paid from estate in 2017). The remaining income generated was only $148 interest. According to IRS instructions, I would technically not need to file a 1041, as this income is well below the $600 minimum.
My concern is with the 'Initial' vs 'Final' options. Should I file, even thought the tax liability is $0, just to have filed a Final return? If I should/need to file, Do I need to include a 8960? Are there any other forms I need to include?

Thanks,
Rob



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Old 03-12-2018, 04:17 AM
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Join Date: Oct 2010
Posts: 5,134
My Uncle passed away July 2016. I'm the executor and have filed the 2016 1041 'Initial' return with no pass thru to beneficiaries (all taxes paid from estate in 2017). The remaining income generated was only $148 interest. According to IRS instructions, I would technically not need to file a 1041, as this income is well below the $600 minimum.
My concern is with the 'Initial' vs 'Final' options. Should I file, even thought the tax liability is $0, just to have filed a Final return?===============>as you can see, You can?t walk away from your duties as trustee until and unless you?ve filed a final Form 1041; yo need to File estate tax Form 1041 in the year the estate closed. Make sure you mark the Final return box on the face of the return. Also, check the Final K-1 box at the top of Sch K-1.I mean before filing the final the trust return, you will need to ensure that it has reached zero taxable income and zero tax liability.The zero taxable income is achieved by passing out all items of income and deduction to the beneficiaries and remaindermen on Sch K-1 of 1041, and by disallowing the exemption amount that would ordinarily be allowed on a non-final return


If I should/need to file, Do I need to include a 8960? Are there any other forms I need to include?=========>I think so aslongas estae is subject to the net investment income tax that is 3.8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount.



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