On the death of a taxpayer, where all assets pass through to the spouse in a community property state, is it necessary to do a 1041 for the estate?
Sometimes, but not all times, the will is probated if there is a significant amount of assets. But many times, if there is only CD's and a residence and personal effects, here in Texas, the will is not probated.
I think a 1041 should be done, at least until the will is probated and the assets are titled over to the surviving spouse. The problem I have is that many times the surviving spouse just continues conducting business for the Schedule C/F/E using the same bank account. Where there are depreciable assets I insist on an inventory of the estate and the setting of FMV that I will use for depreciation purposes.
When the surviving spouse continues on with the Schedule C/F/E business using the same bank account, I have them separate the income and expenses before and after the death of the taxpayer.
Sometimes, but not all times, the will is probated if there is a significant amount of assets. But many times, if there is only CD's and a residence and personal effects, here in Texas, the will is not probated.
I think a 1041 should be done, at least until the will is probated and the assets are titled over to the surviving spouse. The problem I have is that many times the surviving spouse just continues conducting business for the Schedule C/F/E using the same bank account. Where there are depreciable assets I insist on an inventory of the estate and the setting of FMV that I will use for depreciation purposes.
When the surviving spouse continues on with the Schedule C/F/E business using the same bank account, I have them separate the income and expenses before and after the death of the taxpayer.
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