Instructions for Form 1041 - irs.gov

1 Userid: CPMS chema: instrxLeadpct: 100%Pt. size: Draft Ok to PrintAH XSL/XMLF ileid: .. ions/I1041/2017/A/XML/Cycle06/source(Ini t. & Date) _____Page 1 of 43 10:38 - 27-Feb-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before for Form 1041 and Schedules A, B, G, J, and Income Tax Return for Estates and TrustsDepartment of the TreasuryInternal Revenue ServiceSection references are to the Internal Revenue Code unless otherwise 's of Missing Tax To Get Forms and of Taxation of Trusts and Decedents' Trust Must To To Must Off to Whole and Forms That May Be and Reporting of Estate or and Title of Type of Number of Schedules K-1 Employer Identification Date Entity Nonexempt Charitable and Split-Interest Initial Return, Amended Return.

2 Section 645 on and A Charitable B Income Distribution G Tax Investment Income J (Form 1041) Accumulation Distribution for Certain Complex K-1 (Form 1041) Beneficiary's Share of Income, Deductions, Credits, DevelopmentsFor the latest information about developments related to Form 1041 and Schedules A, B, G, J, K-1 and its Instructions , such as legislation enacted after they were published, go to 's NewDue date of return. For calendar year estates and trusts, file Form 1041 and Schedule(s) K-1 by April 17, 2018. The due date is April 17, because April 15 is a Sunday and the Emancipation Day holiday in the District of Columbia is observed on April 16 even if you don t live in the District of change for filing returns.

3 The filing address for estates or trusts located in Georgia, Illinois, Kentucky, Michigan, Tennessee, and Wisconsin has changed. See Where To File, expenses subject to 2% floor and not subject to 2% floor. 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 not exempt from the 2% floor for miscellaneous itemized deductions. Regulations section is available at , amended at 32_ the updated Instructions for lines 12, 14, 15a, and 15c for reporting guidance, gains and qualified divi-dends. For tax year 2017, the 20% maximum capital gains rate applies to estates and trusts with income above $12,500.

4 The 0% and 15% rates apply to certain threshold amounts. The 0% rate applies to amounts up to $2,550. The 15% rate applies to amounts over $2,550 and up to $12, estate filing threshold. For tax year 2017, the requirement to file a return for a bankruptcy estate applies only if gross income is at least $10, disability trust. For tax year 2017, a qualified disability trust can claim an exemption of up to $4,050. A trust with modified adjusted gross income above $261,500 loses part of the exemption deduction. See the Instructions for Line 20 Exemption, later, for more retention credit. If the estate or trust was an employer that continued to pay or incur wages after its business became inoperable because of damage from Hurricane Harvey, Irma, or Maria; or certain California wildfires, it may be eligible for the employee retention credit.

5 See Form 5884-A, Credits for Affected Disaster Area Employers, and its Instructions . For more information about the employee retention credit and other disaster relief provisions, see Pub. 976, Disaster Z (Other credits) added to box 13 of Schedule K-1. Use code Z to enter the amount of the employee retention credit for employers affected by Hurricane Harvey, Irma, or Maria; or certain California wildfires, that is being allocated to the beneficiary in box 13 of Schedule 8975. Certain United States persons that are the ultimate parent entity of a United States multinational enterprise group with annual revenue for the preceding reporting period of $850 million or more are required to file Feb 27, 2018 Cat.

6 No. 11372 DPage 2 of 43 Fileid: .. ions/I1041/2017/A/XML/Cycle06/source10:3 8 - 27-Feb-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 8975. Form 8975 and its Schedules A (Form 8975) must be filed with the income tax return of the ultimate parent entity of a multinational enterprise group for the tax year in or within which the reporting period covered by Form 8975 ends. The first required reporting period for an ultimate parent entity is the 12-month reporting period that begins on or after the first day of a tax year of the ultimate parent entity that begins on or after June 30, 2016. For more information, see Form 8975, Schedule A (Form 8975) and the Instructions for Form 8975 and Schedule A (Form 8975).

7 RemindersReview a copy of the will or trust instrument, including any amendments or codicils, before preparing an estate's or trust's encourage you to use Form 1041-V, Payment Voucher, to accompany your payment of a balance of tax due on Form 1041, particularly if your payment is made by check or money of time to file. Tthe extension of time to file an estate (other than a bankruptcy estate) or trust return is 512 reporting by specified domestic entities. Certain domestic trusts that hold specified foreign financial assets ("specified domestic entities") must file Form 8938, Statement of Specified Foreign Financial Assets, along with their Form 1041. See Other Information, Question 10, 8971.

8 Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, along with Schedule A, is used to comply with the filing requirements regarding consistent basis reporting between an estate and a person acquiring property from an basis reporting between estate and person acquiring proper-ty from a decedent. Section 2004 of Public Law 114-41 has two major An 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 receive property from the estate. The Schedule A must show the final estate tax value of the property received or to be received by the beneficiary.

9 An executor (or other person) who files an estate tax return only to make an election regarding the generation-skipping transfer tax or portability of the deceased spousal unused exclusion (DSUE) may not be required to provide Form 8971 and Schedule If Part 2, column C of the Schedule A received by the beneficiary indicates that the property increases the estate tax liability, the beneficiary must use a basis consistent with the final estate tax value of the property to determine the beneficiary s basis in that property. Calculate a basis consistent 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 1041 E-filing.

10 When e-filing Form 1041 use either Form 8453-FE, Estate or Trust Declaration for an IRS e-File Return, or Form 8879-F, IRS e-file Signature Authorization for Form Form 8879-F can only be associated with a single Form 1041. Form 8879-F can no longer be used with multiple Forms more information about e-filing returns through MeF, see Pub. 4164, Modernized e-File (MeF) Guide for Software Developers and investment income tax. This tax applies to certain investment income of estates and trusts. Use Form 8960 and its Instructions to figure your net investment income tax. See Net Investment Income Tax, later, for more A. Type of Entity. On page 1 of Form 1041, Item A, taxpayers should select more than one box, when appropriate, to reflect the type of F.