Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 3      Issue 103       March 9, 2001

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Dad's Interest'ing From: Glendora, CA Hi TaxMama, My dad died in April of 2000. He had investment (bank) interest. How do I file and in what name his or mine.... Greg Dear Greg, My sympathies for your loss. I'm sure you miss him very much. You don't mention how large your father's estate was, so I will respond on the theory that it was under the filing requirements for an estate tax return. (See page four of the instructions for the Form 706 - for deaths during 2000, the limit would be $675,000) So, here's the easy way to handle things: 1) a) File a personal tax return (Form 1040) for your father showing his income and expenses until the date of his death. b) Be sure to sign as executor/trustee of his estate and attach a copy of the death certificate. 2) Split the rest of his income and expenses among his heirs - and give them all a report with the breakdown. They can all file their share of the information on their own tax returns. If you can get away with this .... that's the way I would go. The more complex way to do this is to do this: 1) Same as above 2) For the income and expenses from April through December Prepare a Form 1041 - US Income Tax Return For Estates and Trusts, checking off box A (Decedent's Estate) in the top left corner. 3) You will need an Employer ID number for the estate, so you you'll need to file a Form SS-4, which you can do by phone and fax. (See the instructions for the phone number in your area.) 4) Prepare the K-1s for each heir, splitting the income, so they can report it on their own returns. 5) Continue to file this Form 1041 for each year until the estate is fully distributed to all the heirs. So, this should keep you busy for a while, wouldn't you think? Best wishes, Eva Rosenberg

Library of Congress -  ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg

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