Читать книгу Form 1041 - Stephen Brooks - Страница 42

It is the probate assets which comprise the “estate” for income tax purposes, and the income earned by the assets and the expenses incurred in administration of those assets during the period the estate is in existence which are reportable on the estate income tax return, Form 1041. For tax purposes, the estate begins on the date of the decedent's death⁵⁸ and ends when the executor or administrator has performed the ordinary duties of administration, such as the collection of assets and the payment of debts, taxes, legacies, and bequests, whether the period required is longer or shorter than the period specified under the applicable local law for the settlement of estates. However, the period of administration of an estate cannot be unduly prolonged. If the administration of an estate is unreasonably prolonged, the estate is considered terminated for federal income tax purposes after the expiration of a reasonable period for the performance by the executor of all the duties of administration. Further, an estate will be considered as terminated when all the assets have been distributed except for a reasonable amount which is set aside in good faith for the payment of unascertained or contingent liabilities and expenses (not including a claim by a beneficiary in the capacity of beneficiary).⁵⁹ The period between the date of death and closing of the estate is sometimes referred to as the period of the administration of the estate or probate.