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1041 Fiduciary returns

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Sherron

Guest
My widowed father's will appointed me executor and left everything to my sister and myself. I have done all the probate on my own, including selling his house and car which was basically all he owned except for an IRA and about $10,000 in savings. The IRA and savings identified my sister as beneficiary, so those did not go through probate.

Is it necessary to hire an accountant or attorney to prepare the 1041 or can anyone recommend better instructions on preparation of the 1041?

The IRS instructions for the 1041 are confusing and the Pub. 559 doesn't make them much clearer. I can understand the court rules and California probate code just fine, but the IRS instructions seem to be written to confuse & the various publications seem to contradict one another.

Any advice?
 


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Marcia M

Guest
Do you have to file at all? That would depend on the size of the estate. Get your accountant to do it if it has to be done.
 
S

Sherron

Guest
The IRS requires that you file a 1041 if the estate has even $600 of "gross income", so even with interest from a small amount of savings you are stuck filing.

I don't have an accountant, which is why I asked the question.
 
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Marcia M

Guest
Most people would essentially forget it and take the interest on the beneficiaries' returns. Sort of the "forget it rule".
 

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