OldJack

Yes. Remember, distribution of assets is not what is reported on form 1041 only income and expense.

Anything you do is probably not right! What I would do is get a EIN for the trust and probably report the 1099 on a 1041 for the current year. Then get rid of the account or have the ID changed.

Basically all property is sec. 1231 except business depreciable property which is all sec.1245 except real estate which is 1250. There are other section property which are not that common in your practice and I will not mention. As an example a piece of machinery is sect 1231 (Sch-D) unless it is use in a business and depreciated it therefore is sec. 1245 (Form4797). A Building is sec. 1231 property (Sch-D) unless it is used in a business and depreciated so it is therefore sec. 1250 (Form4797).

@SunTaxMan: I did not say to not file a state return. I said not reallocation of the W2. You would report the full W2 taxable on the issuing state and take credit for taxes paid on the other state (or the other way around). You don't split up the W2, or redo it (reallocate), and treat it as you think the employer should have reported it. Keep in mind that you may not have the correct information to decide 3/4 to 1/4. What if you are wrong?

Years ago it was unclear if a revokable living trust would require a ID number and some trusts incorrectly used the living persons SS#. It was later determined that for tax purposes the trust was ignored and no EIN number or reporting was needed until the person died. This couple evidently didn't get the word that on death they needed a EIN for income after date of death. In theory you should have reported on a 1041 on the husband and now on the wife.

Form 1041 is like a 1040. If you would amend a 1040 why wouldn't you amend a 1041? The fact that it was marked final is immaterial.

I became confused when I heard the word 'service' used with these agencies. Internal Revenue 'Service' Postal 'Service' Telephone 'Service' Cable TV 'Service' Civil 'Service' City, Provincial & Public 'Service' Customer 'Service' This is not what I thought 'Service' meant. But today, I overheard two farmers talking, and one of them said he had hired a bull to 'service' his cows. BAM!!! It all came into focus. Now I understand what all those agencies are doing to us

Reallocating state taxable income from a W2 is not common.

@Jack from Ohio: What is there about signing where it says "Paid" preparer that you don't understand? edit: In other words if you are not paid you should not sign!

paper file.

Probably Not as it all is within the IRA fund.

Agree with Jainen's comments on the ability of a trust to include other items, however, the trust must state that ability and the asset must be free from any probate court proceedings.

When Mary died the annuity should go to the beneficiaries of the annuity. I guess you are saying there were no beneficiaries so it became payable to the estate? It seems strange that an annuity had no beneficiaries listed. Are you sure that the beneficiary of the annuity is not the trust? If not the annuity would go by a will (or if no will) and would have to be probated to determine beneficiaries of the estate. I would think you would file a 1041 for the estate and annuity as distribution of the income has to still be determined and my not be the same beneficiaries as the trust. Until estate beneficiaries are determined by the probate judge the estate 1041 would have to pay any income tax due. The Trust should file a 1041 and report the sale of the property and either pay the tax or pass the net gain/loss through to the beneficiaries on the K-1 for them to report on their 1040. You need to check further regarding the annuity.

>>there were about $200K of stock sales on the 1099-B<< That is gross income and requires a tax return filing!

>>and that discount accounts are typically income or expense accounts.<< Have you ever questioned why Quickbooks will not let you do that? Don't you think the error message telling you how discounts are typically handled means something? You need to review your accounting books.

Not uncommon for many business such as bars, some gas stations, chiropractors, barber shops, and etc. The IRS doesn't like it but that is their problem.

Most of you evidently think a CPA's primary work is auditing! True that is a prime source of CPA income. But that client that gets audited has to have a tax return prepared for his business and his personal taxes. Therefore, every client the CPA serves is a tax prep job and most of them are much more difficult tax returns than the H&R Block type customer. If the return wasn't involved the client would just use anyone to prepare the return. Most of my clients tax returns take a day or more to complete, not 15 minutes. If you think most CPA's don't prepare and know taxes you are living in a dream world of ignorance.

Six Truths in Life 1. You cannot stick your tongue out and look up at the ceiling at the same time, a physical impossibility. 2. All idiots, after reading #1 will try it. 3. And discover #1 is a lie. 4. You are smiling now because you are an idiot. 5. You soon will forward this to another idiot. 6. There is still a stupid smile on your face. I sincerely apologize about this but I'm an idiot and I needed company.

If ALL of you think you know everything, why are you asking questions on a tax forum? A test score is only one factor in knowledge and does not show the persons experience or skill. After my CPA test many years ago, I learn something new everyday and I have been learning for more than 40 years. I still don't know all I would like to know, but that is what tax publications are for. You guys get over it!

It would only have to have 1 check or 1 cash associated with the corp to require a 1120S reporting. Actually the corp has to show liquidating transactions in order to file a final return and those would have to have been dated in the final calender year. Maybe there is a good reason not to pay a salary.

Would it be all right if I reported zero income on my return and put my income on your tax return? If the S-corp had transactions in its name how could you ignore those?

Most call me a "Car Parking Attendant", so what's the big deal and why are they to call me about a "Rich Medical Doctor"?

Or... the 1041 could NOT pass the income (no K1) and request a 1041 refund for the difference in the tax and the withholding and then the beneficiary receives the net tax free. However, the tax might be higher than if put on the 1040.

No.. it is a 1120 page 5, Sch-M1, line 5c adjustment to taxable v. book income. No.. a 1099-Div is only for actual dividend payments out of the $6,032 remaining accumulated retained earnings.

And how did child #1 support herself if all her earnings went for tuition?