1041 Issue

[Bjorn]

Sir or Madam:

Facts: Tax payer died 6/19/05 and the estate closed on 5/31/06.

What is the rule to determine when the k1 actually posts to the 1040. I understand that some times the K1 may have a different year than should actually be reported on the 1040.

What year should this K1 hit the 1040? We did the 1041 in the 2005 Ultra Tax.

Mahalo,


Bjorn

[abby]

Go by the year end date

The taxpayer will receive a 2005 K-1 but will include it in their 2006 return. The fiscal year end date is the date to use in determining the year for reporting. Otherwise there would be a ton of amended returns needed every year. Not that the IRS might not make such a rule - they very well could, but so far this is the correct treatment.