Estate Form 1041 tax year-end
Date of death was 6/30/09, so normal max year-end is 5/31/2010, and return due by 9/15/2010. No income received by the estate until September 2009. Is there any rule to allow the election to use a tax year of 9/1/09 to 8/31/10?
No return has been filed yet... is there a legitimate argument that a return for the period 6/30/09 to 8/31/09 was not required since there was no income to the estate?
Reason to shift the tax year, if possible, is due to a sizeable refund of medical expenses in July that were deducted on decedent's 2009 (final) 1040, and some additional admin. expenses paid after May.
If I can't shift the tax year, and a 2nd year Form 1041 is required, the beneficiary will lose the benefit of excess deductions, and will pay tax on the medical expense refund.
I considered amending the final 1040, but don't think it is proper way to handle the refunded medical expenses since the refund came over a year after date of death.
Thank you for your suggestions.
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