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1 Income Tax Return for Decedent Form , Address, and and Where To To , Other Taxes, Forgiveness for Armed Forces Members, Victims of Terrorism, and Tax Benefits for in Respect of in Respect of Tax , Insurance, Items of Tax Return of an Estate Form To and , Tax, and , Address, and and Where To to Distributed Amounts of a Legal of and When To of and Gift Return for Tax Return of an A. Checklist of Forms and Due B. Worksheet To Reconcile Amounts Reported in Name of To Get Tax of the TreasuryInternal Revenue ServicePublication 559 Cat. No. 15107 USurvivors, executors , andAdministratorsFor use in preparing2018 ReturnsGet forms and other information faster and easier at: (English) (Espa ol) ( ) ( ) (Pусский) (Ti ngVi t) Userid: CPMS chema: tipxLeadpct: 100%Pt.

2 Size: 8 Draft Ok to PrintAH XSL/XMLF ileid: .. tions/P559/2018/A/XML/Cycle01/source(Ini t. & Date) _____Page 1 of 48 8:49 - 14-Feb-2019 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 13, 2019 Future DevelopmentsFor the latest information about developments related to Pub. 559, such as legislation enacted after it was published, go to 's NewBeneficiary deductions. Section 67(g) sus-pends miscellaneous itemized deductions sub-ject to the 2% floor for tax years 2018 through 2025. See Notice 2018 61 for more information about allowable beneficiary deductions under section 67(e) and 642(h).

3 Also see Regulations section for costs that are commonly or customarily incurred by an of taxes. The deduction for state and local taxes is limited to $10,000. The de-duction for foreign real property taxes is no lon-ger allowed. See the Form 1040 Instructions and Form 1041 Instructions for more operating loss. The Tax Cuts and Jobs Act of 2017 ( 115-97) eliminated the option to carry back a net operating loss (NOL) for most taxpayers. Generally, an NOL generated in a tax year ending after 2017 can only be car-ried forward to subsequent years. The 2-year carryback rule no longer applies. See Pub. 536, Net Operating Loss for Individuals, Estates, and Trusts, for additional information.

4 Exceptions apply to certain farming losses. See Pub. 225, Farmer's Tax Guide for more 965 deferred foreign income. If you own (directly or indirectly) certain foreign corpo-rations, you may have to include on your return certain deferred foreign income. You may pay the entire amount of tax due with respect to this deferred foreign income this year or elect to make payment in eight installments or in the case of certain stock owned through an S cor-poration, elect to defer payment until occur-rence of a triggering event. See the Form 1040 instructions, and Form 1041 instructions, for more business income deduction. For tax years beginning after 2017, individuals, es-tates, and trusts may be entitled to a deduction of up to 20% of their qualified business income from a trade or business .

5 For more information, see section 199A and Pub. 535, business 8990, Limitation on business Interest Expense Under Section 163(j). For tax years beginning in 2018, taxpayers are required to file Form 8990, unless an exception for filing is met. Small business taxpayers other than a tax shelter, with average annual gross receipts of $25 million or less for the 3 prior tax years are not required to file Form 8990. For more infor-mation, see Form 8990 and the Instructions for Form of Global Intangible Low-Taxed Income (GILTI). Public Law 115-97 enacted new section 951A, which requires share-holders of controlled foreign corporations to de-termine and include their GILTI in taxable in-come every year.

6 Section 951A is effective for tax years of foreign corporations beginning after 2017, and to tax years of shareholders in which or with which such tax years of foreign corporations end. Use Form 8992 to figure the shareholder's GILTI and attach it to your income tax return. See section 951A and the In-structions for Form 8992 for more this publication, section references are to the Internal Revenue Code unless otherwise treatment of estate and trust items. Beneficiaries must generally treat estate items the same way on their individual returns as they are treated on the estate's expenses allowable under sec-tion 67(e). Regulations under section 67(e) clarify which costs, such as investment advisory and bundled fiduciary fees, incurred by estates and nongrantor trusts are and are deductible.

7 Regulations section is available at amended at 2014-32_ For more information, see the Instructions for Form 1041. Also, see see Notice 2018 61 for further basis reporting between estate and person acquiring property from a dece-dent. Section 2004 of Public Law 114-41 has two major executor of an estate (or other person) required to file an estate tax return after July 31, 2015, must provide a Form 8971 with attached Schedules A to the IRS, and a copy of the beneficiary's Schedule A to each beneficiary who receives or is to re-ceive property from the estate. The Schedule A must show the final estate tax value of the property received or to be re-ceived by the beneficiary.

8 An executor (or other person) who files an estate tax re-turn only to make an election regarding the generation-skipping transfer tax or porta-bility of the deceased spousal unused ex-clusion (DSUE) may not be required to provide Form 8971 and Schedule Part 2, column C of the Schedule A re-ceived by the beneficiary indicates that the property increases the estate tax liability, the beneficiary must use a basis consis-tent with the final estate tax value of the property to determine the beneficiary s ba-sis in that property. Calculate a basis con-sistent with the final estate tax value by starting with the reported value and then making any allowed more information, see the Instructions for Form 8971 and Schedule A and Column (e) Cost or Other Basis in the Instructions for Form exclusion and GST exemption amounts.

9 If a decedent made a taxable gift during the decedent's lifetime to the decedent's same-sex spouse and that transfer resulted in a reduction of the decedent's available applicable exclusion amount, there is a new procedure al-lowing the decedent to restore the exclusion that was utilized in the transfer. If a decedent made a taxable gift during the decedent's life-time to a skip person whose generation assign-ment is changed as a result of Notice 2017-15, any GST exemption amount allocated to the gift will be deemed void. For more information, see the Instructions for Form 706 and Notice 2017-15, 2017-06 for executors filing to elect port-ability.

10 executors who didn't have a filing re-quirement under section 6018(a), but failed to timely file Form 706 to make the portability elec-tion, may be eligible for an extension under Rev. Proc. 2017-34, 2017-26 1282. Exec-utors filing to elect portability, may now file Form 706 on or before the later of January 2, 2018 or the second anniversary of the dece-dent's death. For more information see Rev. Proc. of missing children. The Inter-nal Revenue Service is a proud partner with the National Center for Missing & Exploited Children (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank.