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The Final Income Tax Return
As the saying goes nothing is certain, but death and taxes. Well we don't do death, but we do-do taxes. The final 1040 tax return for an individual consist of all the income a person receive before they pass away. Any income that comes in after this period is recorded on the 1041 Fiduciary Estate Tax Return
1041 Fiduciary Estate Tax Return
What is the purpose of the 1041 Fiduciary Return?
The personal representative, executor or administrator are legal terms for the same role. This person has been charged by the court to act on behalf the deceased estate to legally distribute the assets of the estate.
Most estates consist of the selling assets the largest asset for most people is their home. The deceased may have jewelry, cars, ira accounts, money in the bank and life insurance. The personal representative is responsible for recording the personal property on an inventory. The fiduciary return deals with money that the estate has earned after the deceased death. For example the proceeds from the sale of a home, paychecks the decease receive after his date of death. For example the tax payer dies on June 1st however, he receives a paycheck on June 5. The pay check he received on June 5 will be included in the 1041 Fiduciary Tax Return
