Hi
Thanks for this forum!
An 100% Shareholder of an S corp passed away; now the corp is included in the estate. The corp continues operating in name only (no new business) for the purpose of collecting account receivables. 1 check was received, but to obtain it, non-operating expenses were incurred by the corporation.
1. The subject of the post is the received check. Is the check IRD (Income in Respect of the Decedent)?
2. Is this check part of S corp income on 1120S, or only reported on 1041 (the estate income tax), or on both forms?
3. Do expenses that were incurred to receive the check get reported in the same manner as the check (ie, on the same forms)?
Also,
4. From the date of death to the end of the year, does the estate or the inheritor get the K-1? Please note that the estate is not distributed yet.
Any answers would be very appreciated!
Thanks for this forum!
An 100% Shareholder of an S corp passed away; now the corp is included in the estate. The corp continues operating in name only (no new business) for the purpose of collecting account receivables. 1 check was received, but to obtain it, non-operating expenses were incurred by the corporation.
1. The subject of the post is the received check. Is the check IRD (Income in Respect of the Decedent)?
2. Is this check part of S corp income on 1120S, or only reported on 1041 (the estate income tax), or on both forms?
3. Do expenses that were incurred to receive the check get reported in the same manner as the check (ie, on the same forms)?
Also,
4. From the date of death to the end of the year, does the estate or the inheritor get the K-1? Please note that the estate is not distributed yet.
Any answers would be very appreciated!