Question

Do I need to file 1041 for an estate if the estate was liquidated at a net loss?

Forum|Forum|6 years ago
July 8, 2019
1 reply
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I liquidated an estate in the state of Oregon. The only assets of the estate were furniture, of negligible value, and a house. The house was valued at $185,000, but due to the condition was sold under market value at $155,000, the estate was entitled to half. I also incurred expenses of $11,000, as well as an executor fee of $2,215. Do I need to file a 1041 if the estate netted a loss?

Critter

Employee

Yes you need to file the 1041 for 2 reasons ... first the estate had gross income of more than $600 even if it will be a net loss in the end AND the beneficiaries of the estate will get the pass thru of the loss on a K-1 and they get to claim the loss on their return.