Form 1041

[Christian]

One of my least favored tax forms is the 1041 which I rarely have to deal with. A client's father died last year. One of the items falling into his estate is an annuity payment of some $180,000 or so. Of this amount about $30,000 is indicated as taxable. in reviewing the instructions for the 1041 I note this should be reported on the other income line of the return. My reading is I need report ONLY the taxable amount on this line since when passed to the sole heir he will be responsible for paying the tax on this income. Or should the entire amount be reported showing the taxable amount in brackets ? Either way the amount shown on the heir's Schedule E from his K-1 should be only the taxable amount of the annuity. Any comments will be appreciated.

[kcjenkins]

The taxable portion on line 8.