Estate Income Tax Return Preparation

“Estate taxation is a complicated area of the tax law so we highly recommend that you engage an experienced tax professional to guide you through the process.”

During the lifecycle of a probate estate, it is possible for the assets to generate taxable income. When the gross income for the tax year is $600 or more, the estate will need to file an income tax return. Form 1041, U.S. Income Tax Return for Estates and Trusts, is used to report the estate’s income and deductions. Even if a tax return is not required, it may be beneficial to file a return if there are legal or accounting fees in the final year that may generate excess deductions on termination.  

There are other reasons for filing Form 1041 for an estate such as when the estate generates a capital loss on the disposition of assets in it’s final year. Estate taxation is a complicated area of the tax law so we highly recommend that you engage an experienced tax professional to guide you through the process.

Here is what you can expect when you engage us to prepare your estate income tax return . . .

• We will help you properly identify the income, deductions, gains, losses and credits to be included on the estate tax return; 
• We will gain an understanding of the tax reporting issues unique to your situation, such as income in respect of a decedent; and
• We will explain the taxation of estates so that you can communicate with beneficiaries the nature of estate taxation, including items such as distributable net income and the income distribution deduction. 

For more information, please call us at (775) 828-5027 or send us an email.