FORM 1041

[TAXMAN]

I noticed in the instructions for form 1040 on page 1 paragraph 1 it states:"An estate(or other person) required to file an estate return after July 31, 2015 must provide a statement that includes the estate tax value of property reported on the return to both the IRS and any beneficiary who receives property from the estate."

Does this apply to an estate filing only a 1041 passing out stock?

What kind of statement is required and what must be in there. Would a copy of the inventory filed in court house suffice?

The values for most of what I have seen is provided by the broker when transferring the assets to new party.

What if no filing is required(1041) as all assets may have had joint owners, POD, TOD etc.

Am I overstating of overly concerned?

 

 

 

[OldJack]

First a 1041 is an income tax return and does not report asset values of an estate or distribution of assets.  Form 1041 may report distribution of taxable income but not value of assets.  That paragraph is simply making you aware that an estate may need to also file an estate tax return if values are over the credit amout.

[SaraEA]

Like Jack said, a 1041 is an income tax return.  The paragraph that mentions an estate tax return refers to Form 706.  Unless your client's estate is worth more than about $5.45m ($10.9 MFJ), you probably won't have to file a 706 and can ignore that warning.  I've been doing this for years and am about to file my very first 706 ever.  Well, I've done several in various courses but this is the first real one.

[DANRVAN]

56 minutes ago, SaraEA said:

  Unless your client's estate is worth more than about $5.45m ($10.9 MFJ), you probably won't have to file a 706 and can ignore that warning. 

Or if they live in a state like Oregon that has a lower exemption for inheritance taxes.

[Lion EA]

Or, you want to elect portability.

But, we do have to report basis to beneficiaries now.  Is that done on a 706?

[michaelmars]

Beneficiaries get the step up so you have to provide the basis to them, real estate, stock, etc.

 

[DANRVAN]

14 hours ago, Lion EA said:

 

But, we do have to report basis to beneficiaries now.  Is that done on a 706?

Report on form 8971, which is to be filed within 30 days of filing form 706.  If 706 is not required, then 8971 is not required.