Just Had A Client Drop Off A K-1 He Just Received From The Estate Of His Late Aunt. It Indicates It Is For The Period 11/7/07 Through 10/31/08 And Is A 2007 K-1. Would Greatly Appreciate Some Help On How To Properly Report This On His Federal Return. Thank You In Advance.
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That depends on what is on each line item. In most cases you transfer the numbers line by line to the Estate K-1 worksheet in your software program and it will automatically put it in the right places. You might have to watch out for state treatment. -
K-1 from Estate
Gretel, thank you for the reply. I should have been more explicit. What I meant was that the client did not receive any of the distributions noted on the 2007 K-1 until 2008 but since it was a 2007 K-1 my gut tells me I must amend his 2007 return to show the various categories of income that the Estate reported distributing to him. Thank you.Originally posted by Gretel View PostComment
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2008
You report the K-1 information on the return for the year in which the K-1 ENDS which is 2008.Comment
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Probably the reason that it is on a 2007 form is that the estate ended 10/31/08, (and I am assuming it was a Final K-1), which means the estate was closed and return filed before the 2008 IRS forms were released. That does not matter. You report as Lion said on the 2008 tax return which is the year in which the estate ended. (See info for fiscal year at top of form.) It really does not matter when he received the distributions either. If the estate is still open, there was no reason not to wait until the 2008 forms were available.Comment
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Estate
I think the estate reports on the forms for the year in which the estate fiscal year BEGINS. But, that wasn't the OP's question. It is why the client will think there's a mis-match with the 2007 K-1 on his 2008 personal return.Comment
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