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Form 1098 issued in Estate's name and deceased's SS#

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    Form 1098 issued in Estate's name and deceased's SS#

    Ok, the deceased's died on Mar 2010 and all his assets, loans etc were transferred to his parents over the next months but the mortgages were not transferred in time thefore one 2011 form 1098 was issued to the deceased's estate and the deceased's SS# and the other form 1098 was issued to the deceased and the deceased's SS#. Client never pursured a corrected form 1098. The mom of the deceased was the personal representative of the estate. We are coming down to the wire so if anyone has any suggestions that will have an immediate impact, please share your suggestions otherwise I will probably have the TP/Parents contact the lenders and correct the 2 forms 1098. If they are successful, then I will probably need to amend their tax return.

    #2
    If the 1098's are in the deceased's SSN, they are not going to match to anything, as no return will be filed for 2011 if he died in 2010. However, where these deductions are taken is another matter. You say you will have to amend "their tax return." Whose tax return? If this is the same case you posted about earlier, don't they go on the estate 1041 return? Or are you talking about taking them on the parents' 2011 return?

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      #3
      Answers to questions

      Originally posted by Burke View Post
      If the 1098's are in the deceased's SSN, they are not going to match to anything, as no return will be filed for 2011 if he died in 2010. However, where these deductions are taken is another matter. You say you will have to amend "their tax return." Whose tax return? If this is the same case you posted about earlier, don't they go on the estate 1041 return? Or are you talking about taking them on the parents' 2011 return?
      My hopes are to report those form 1098's on the parents 2011 return since they were legal owners of the properties for all of 2011. If not and the lenders agree to correct them, time is running out and probably will need to amend. Yes same case I posted earlier.

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        #4
        This is going on the Schedule E, right? Just report it on line 13 instead of line 12 and attach a statement. See the Schedule E instructions. There's a similar rule for Schedule A, but it doesn't sound like that applies here.

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          #5
          Another property

          Originally posted by Gary2 View Post
          This is going on the Schedule E, right? Just report it on line 13 instead of line 12 and attach a statement. See the Schedule E instructions. There's a similar rule for Schedule A, but it doesn't sound like that applies here.
          Gary, the deceased has a 2nd property other then his principal residence that he used once in a while as a residence and one of the 1098's list that property address so that probably would not qualfy for any rental mortgage interest exp.

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            #6
            Talked to the IRS

            IRS ask me some questions. One was did the taxpayer indeed pay all the mortgage interest through 2011. I recall the TP saying yes but then it dawned on me the TP is still rather confused so is it possible the mortgage interest was paid by the deceased's estate even though he died in Mar 2010 and his 1041 was filed in calendar year 2010? Wasnt the estate closed on Dec 31, 2010?

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              #7
              The estate was not closed December, 2010 unless the executor closed it by paying all the expenses and debts, distributing all the assets, including retitling all the real property and closing the bank account by that date. It is possible all this occurred, but you need this information from the executor, as well as the 1041 return to see if it was checked "initial" and/or "final." If the estate was not finished up with all these things until sometime in 2011, then there is another 1041 return to file. (It may be for a short year.) And apparently it is not clear if the executor/administrator/personal representative elected a calendar year or a fiscal year on the return. A fiscal year would have run from the date of death (March 2010) until February 28, 2011 or some other shorter time frame. If the estate was actually closed in 2010, then all the mtge interest paid by the parents in 2011 goes on their returns (assuming they inherited the properties.) The non-rental would go on Sche A, if they can itemize.
              Last edited by Burke; 10-10-2012, 04:18 PM.

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