Estates and Succession Services
Trust, Gift and Estate Tax Returns
In addition to conventional tax preparation, we’re certified to prepare trust, gift and estate tax returns. We meticulously prepare these kinds of returns and submit them on time to prevent charges.
Producing an estate strategy that will preserve your possessions for the next generation is necessary no matter what stage you’re at in life. Our estate tax planning options are created to line up with your personal priorities.
Maintain the connection of your business and address important issues ahead of time with an business succession plan. We’ll establish a plan that guarantees your company, and will prevent tax issues when being moved to your recipients.
If you have just lost a parent, spouse or other family member, you’re learning that not only is the loss an emotional trauma, but the loss produces a bunch of tax headaches too.
We want to start by first offering our condolences to you and your household.
Let us try to assist you and your family, too, by providing a birds-eye view of the tax returns the estate owes the federal and state tax authorities. We’ll also try to provide the basic info you require if you’re the one needing to deal with this.
Final 1040 Individual Income Tax Return
Someone has to file a final 1040 income tax return for the decedent. In the case of a couple, the surviving spouse most likely files the return. If a court has actually appointed an individual agent or other estate administrator, that appointee most likely submits the return. The final 1040 return is due April 15th in the year following the death.
706 Estate Tax Return
If the decedent’s estate is big, the estate will owe the federal government and most likely the state government an estate tax return and very possibly estate taxes. Nevertheless, most estates are not large enough that estate tax returns and estate taxes are owed the government. For instance, currently only estates greater than $1,500,000 owe the federal government estate taxes. (Note: Estate taxes are computed as a portion of the overall estate using a Form 706.) The 706 estate tax return is due 9 months after the decedent’s death.
1041 Estate Income Tax Return
The estate itself– in other words, the properties the decedent owned and which it disperses to recipients in the months after the death– usually owes the federal and state government an income tax return. This is the income tax return on which estate earnings and estate deductions are revealed. The gross income or loss generated by the estate, nevertheless, isn’t taxed directly to the estate but instead is assigned to the beneficiaries. Due dates for estate income tax returns are a little bit difficult and represent a tax preparation opportunity. In a nutshell, the estate tax return (the 1041 return) is due on the 15th day of the 4th month after the estate’s tax accounting year ends. However, as long as the estate’s very first accounting year isn’t really longer than twelve months, the estate can choose which month ends the tax accounting year for the estate. For example, if somebody dies on October 15th of, say, 2014, the estate’s income tax year can end on October 31st, 2014, or on November 30th, 2014, or on the last day of any other month through September 30th, 2015.
One other note about 1041 estate income tax returns: The personal agent or estate administrator has to get an employment identification number, or EIN, from the Internal Revenue Service for usage in reporting its income and reductions. Often the lawyer probating the estate gets an EIN, however you can likewise get one yourself using the SS-4 form.