Fee for Deceased Single TP, final 1040 (sole proprietor) & Estate 1041?

[AZ-Tax]

What Fee would you charge for Deceased Single TP, final 1040 (sole proprietor) & Estate 1041? Prepared TP's tax return for 10 years and PR is shopping around. TP did not have Will.

[ATSMAN]

What Fee would you charge for Deceased Single TP, final 1040 (sole proprietor) & Estate 1041? Prepared TP's tax return for 10 years and PR is shopping around. TP did not have Will.

First if I prepared the return for 10 years and the PR is shopping around to get a cheaper price I would feel insulted unless you quoted really high.

I routinely do 1041 because I have many elderly clients and unless it is very involved I charge a flat $150 including state. The usual income I find are a pension account or IRA, investment accounts without a beneficiary and the heirs are willing to split it equally after taxes. If a will is involved and I am retained to work with an attorney I bill by the hour.

For the final 1040 I would charge what your normal billing is for that client.

[Burke]

Your normal charge for 1040. 1041 depends on complexity. If sale of home involved, usually at a loss, then Sche D (1041) required, plus K-1's for all benes for pass-through items. This is assuming the 1041 is a first and final return. You need to determine calendar or fiscal year. My charge can range from $175 (no K-1's) - $375, and up for really involved cases. Each estate situation is so different, it is hard to establish a set price. Since there is no spouse and no will, it can get complicated, since assets have to pass by operation of law. If there is only one heir, it is a little simpler. If there are financial accounts, such as stocks with no named beneficiary, they go into the estate. If they were sold before being distributed to heir(s), that's another thing you have to account for.

[ATSMAN]

I should have mentioned I only deal with the executor/PR/Estate Attorney. I do not respond to any calls from the K1 beneficiary. I got into real trouble early in my career trying to be nice and got caught in a family crossfire!

[Burke]

But you do need to obtain W-9's from each beneficiary, to have the proper information to do the 1041. The PR can handle that part, but you need the forms. When you do the K-1's, be sure to attach the Codes sheet with each one. This should answer any questions as to where the information is reported on the bene(s)' returns.