Does an Estate need to issue 1099's?

[AZ-Tax]

Does an Estate need to issue 1099's of any form to heir's/beneficiaries for income distribution, other distributions if over the amount required to issue one?

[Lion]

K-1s to beneficiaries.

[AZ-Tax]

Should the Estate issue K-1's for distributions made in 2014 etc.

K-1s to beneficiaries.

Should the Estate issue K-1's for distributions made in 2014 yet the Estate form 1041 will not be filed until mid 2015?

[DaveO]

Distributions of income to the bene's will still go on the k-1. The tax year of the trust or estate controls. If a bene performed personal services for the trust/estate for which a 1099 would be due then it would be issued for 2014.

[Burke]

(1) 1099's are generally required for payments in excess of $600 to vendors who are not corporations, same as any employer. (Box 7, non-employee compensation. )

(2) Also, if the executor/trustee receives a fee for his/her services, then the entity should issue one to him/her for that fee in the calendar year that it is paid. It is taxable. (Box 3, Other Income(not subj to SE).

(3) If distributions are made to beneficiaries, and there is taxable income to the extent of such distributions, such income is shown on Form K-1 1041. If there is no taxable income and/or losses to pass through to the beneficiaries, K-1's are not required. Distributions of estate or trust corpus do not need to be reported per se, other than on Page 2 of Form 1041 to calculate the DNI.

(4) If the estate has a fiscal year, then any income to the extent of distributions is reported via the K-1 that is produced at the end of that fiscal year. It is possible for the beneficiary to receive a distribution in 2014, and if the estate year ends in 2015, then any taxable income as a result of that distribution is reported by the taxpayer in 2015.

[buzzardbreath]

Bump it Up

Thought I would bump this up to the top as it outlines a distinction between K-1s and 1099s.