How are Federal & State taxes owed by the deceased, by the estate, dealt with during probate?
With respect to federal & state taxes, a death terminates the decedent’s final tax year as far as filing an income tax return is concerned, and it creates a new entity for tax purposes called an “estate.” The estate has to complete and file one or more of the following for Federal taxes: Final Form 1040 Federal Income Tax return; Form 1041 Federal Fiduciary Income estate Tax returns; Form 709 Federal Gift Tax return(s); Form 706 Federal Estate Tax return. As for the state – state income tax return and any state income tax returns during the probate period, plus possible estate tax, inheritance tax and gift tax returns may need to be filed by the executor. However, requirements vary state to state; and inheritance, gift and estate taxes have been eliminated by some states, as far as many of the smaller sized estates are concerned. Your probate attorney will be able to determine how your state’s rulings specifically impact you and your family. Your executor or personal representative sho
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- How are Federal & State taxes owed by the deceased, by the estate, dealt with during probate?
