Final year estate income return

[joanmcq]

Decedent owned 3 properties, two residences and one rental. 3 different states, 3 different probates. Las Vegas residence transferred to the beneficiary in December 2013, AZ rental in April 2014, and the final CA residence in June 2014. I reported rental income up through April 2014 on last years estate 1041 and the rest on the bene's return. How do I remove the rental from the final estate return to show it was distributed? Disposition with no gain/loss? I'm using ATX.

[Abby Normal]

You don't have to remove it. It was not disposed.

 

Just make sure the depreciation is right. Probably have to override that.

[joanmcq]

Thanks. Sometimes I overthink things.

[OldJack]

Form 1041 is an income tax form to report taxable income, not for reporting distribution of the value of assets to beneficiaries.

[Burke]

You don't have to remove it. It was not disposed.

 

Just make sure the depreciation is right. Probably have to override that.

 

I disagree.  It was disposed of as far as the Estate was concerned.  It should reflect in the DNI on the final 1041 if it was transferred to a beneficiary.  And disposition with no gain or loss as Joan suggested should work as far as ending the depreciation at the proper point. 

[SaraEA]

DNI = distributable net INCOME.  The property is not income (albeit income producing). Old Jack is right--the 1041 reports income and what if any income was distributed, not distribution of assets.