Death no will

[superman]

Client died and had no will son is taking care of tax return. Question is the only asset left in the estate is the home and he is having trouble selling it all other assets are now distributed between children and grandchildren. Do I have to file a 1041 along with the final 1040 and if so do we have to get a tax id # for the estate? This is my first death with no spouse and I am struggling here. Any guidence is greatly appriciated.

Not so super right now!!

[Burke]

Client died and had no will son is taking care of tax return. Question is the only asset left in the estate is the home and he is having trouble selling it all other assets are now distributed between children and grandchildren. Do I have to file a 1041 along with the final 1040 and if so do we have to get a tax id # for the estate? This is my first death with no spouse and I am struggling here. Any guidence is greatly appriciated.

Form 1041 is filed separately from final 1040, and only if necessary. Estate begins at date of death, which you do not mention. Estate can have a fiscal or calendar year. Form 1041 is filed only if estate income exceeds $600 gross for the estate's taxable year, whichever you decide that is going to be. Sounds like estate has/had no gross income yet, but I can't tell from your post. Could have received something from date of death to date of distribution, depending on what the "other assets" were. Estate will receive gross proceeds from sale of house, so that has to be accounted for, unless settlement agency pays the heirs (children) directly. You need to check your state's rules for administration of intestate situations. To answer your question, if you do file Form 1041, you need to get an estate EIN.

[superman]

Burke

Thanks for the clearifaction. The other assets were IRA, 401ks and such so they had beneficiers already in place. The date of death was sept. of 07 so are you saying if the house is sold and the proceeds are paid directly to the heirs then no 1041 is needed? If that is the case than I just file a final 1040 for this year and all is done? Right.

Thanks for your assistance.

Kinda Super now.

[veritas]

You will need

an TIN for the sale of the home. It will be a sale by the estate reported on a 1099-S.

[LMathey]

Without a will how do you know how the proceeds of home are to be distributed? Who is determining who the "heirs" are? Your client should consult attorney as there are rules in each state when someone dies without a will.

If the total assets were large enough, there may be a state death tax and a return to be filed. Other comments are correct no 1041 unless the income earned by the estate from date of death to end of year selected for estate is greater than $600. However, sale of home would be reported on 1041 for estate. Probably no gain since the sales price should be the value on the estate return for the state.

There would be a final 1040 with income cut off as of date of death. Some local attorney's here dealing with a small estate ignore that rule and report all income in year of death on final 1040 but that is not technically correct.

[gkaiseril]

Has any action been taken within the state to probate the assets?

[superman]

probate yes

The esate is in probate and with the housing market down the family can not sell the house as of yet. Everything else is out to the respected heirs. The heirs were whoever she set up as beneficieries when the investments were established.