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Estate with IRA distributions




We have a estate return in our office where the only income is IRA distributions. In other words the 1099-R's we left to the estate and are to be split equally between children and grandchildren. I have never seen this before an my question is do we just let it flow through from K-1 or do we need to do 1099 R's for the distributions of this money. There is nothing else other than the IRA's

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I just did one, I let it flow though the k-1 and the benficary will pick it up as income in the year of distrubtion. I could not find anyother way to handle it. if there is let us know

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This is IRD income. If there were distributions to the beneficiaries the income would flow via the K-1 to the beneficiaries. If no distributions the estate should pay tax on it on the 1041.

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Thanks, The money will all be distributed to beneficiaries.

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"Will be" is not the same as "Was"

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Kevin, could you elaborate. The IRA money was left to the estate and will be distributed this year. DOD was 1/6/07 and IRS notice is showing due date of 4/15/08 for 1041. Money was just sitting in account till all bills were paid as requried Thanks for any help on this one.

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longest fiscal year end would be 12/31/07 for estate for the 65 day rule to apply, money must be distributed by 65 days after year end they blew it estate will pay the taxes they should have gotten professional tax help before year-end

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this is a prime example of where the taxpayer should have gotten professional help instead of waiting until too late