I am the executor of my dad's estate. I worked for many years doing estate and tax work, but I retired many years ago and am rusty.
No federal estate tax return was needed. Everything from the estate poured over into a trust. There were big gains in the estate and a loss from the sale of his house in the trust, so i made the sec 645 election to combine. The first year, almost all of the income was offset, so I waited to take the executor fee in the second year. There was very little income in the second year, so I think I can carry the deduction over to the beneficiaries K-1's.
My questions are:
1. Can I carry the deductions over to the K-1's for the beneficiaries?
2. Will those deductions then be subject to the 2% limitation? If so, they won't be deducted by any of the beneficiaries because they aren't enough for that threshold. If that is the case do i have to even do the K-1's since that would be the only thing on them.
3. Am I missing anything else?
I appreciate any advice!
No federal estate tax return was needed. Everything from the estate poured over into a trust. There were big gains in the estate and a loss from the sale of his house in the trust, so i made the sec 645 election to combine. The first year, almost all of the income was offset, so I waited to take the executor fee in the second year. There was very little income in the second year, so I think I can carry the deduction over to the beneficiaries K-1's.
My questions are:
1. Can I carry the deductions over to the K-1's for the beneficiaries?
2. Will those deductions then be subject to the 2% limitation? If so, they won't be deducted by any of the beneficiaries because they aren't enough for that threshold. If that is the case do i have to even do the K-1's since that would be the only thing on them.
3. Am I missing anything else?
I appreciate any advice!