Estate Income Tax Return

[peggysioux]

Can an estate use the 663(b) election (the 65-day rule) if the distributions are capital gains? Another question I have is.... I know that capital gain income is not automatically distributed, but can estate distribute the capital gain income so that estate doesn't pay tax on capital gain if not final year? Attorney is stating unable to close probate in time to make fiscal year ending 3/31/19 final year.

[Burke]

Yes. Estate can distribute capital gains at executor's discretion. And the 65 day rule applies to any distributions to beneficiaries if election is made.