Each of the items listed below was incurred by José, the cash basis, calendar year decedent. Under the terms of the will, Dora took immediate ownership in all of José's assets, except the dividend-paying stock. The estate received José's final paycheck. Applying the rules for income and deductions in respect of a decedent, indicate on which return each item should be reported: Dora's income tax return (Form 1040), the estate's first income tax return (Form 1041), or the estate's estate tax return (Form 706). More than one alternative or no alternative may apply in some cases. Select the correct answer from each dropdown. Reported on: Form 1040 Income Tax Reported on: José's Estate: First Form 1041 Income Tax Reported on: José's Estate: Form 706 Estate Tax Reported on: Not Reported on Any Return Item Incurred Form(s) Reported on a. Wages (last paycheck received after date of death) ? b. State income tax withheld on last paycheck ? c. Capital gain portion of installment payment received 1,3 d. Ordinary income portion of installment payment received ? e. Dividend income (record date was two days prior to José's death) ? f. Unrealized appreciation on a mutual fund investment 3 g. Apartment building rents accrued but not collected as of date of death ? h. Apartment building property tax accrued and assessed but not paid as of date of death 1,3

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 27P

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Each of the items listed below was incurred by José, the cash basis, calendar year decedent. Under the terms of the will, Dora took immediate ownership in all of José's assets, except the dividend-paying stock. The estate received José's final paycheck.

Applying the rules for income and deductions in respect of a decedent, indicate on which return each item should be reported: Dora's income tax return (Form 1040), the estate's first income tax return (Form 1041), or the estate's estate tax return (Form 706). More than one alternative or no alternative may apply in some cases. Select the correct answer from each dropdown.

Reported on: Form 1040 Income Tax
Reported on: José's Estate: First Form 1041 Income Tax
Reported on: José's Estate: Form 706 Estate Tax
Reported on: Not Reported on Any Return

	Item Incurred	Form(s) Reported on
a.	Wages (last paycheck received after date of death)	?
b.	State income tax withheld on last paycheck	?
c.	Capital gain portion of installment payment received	1,3
d.	Ordinary income portion of installment payment received	?
e.	Dividend income (record date was two days prior to José's death)	?
f.	Unrealized appreciation on a mutual fund investment	3
g.	Apartment building rents accrued but not collected as of date of death	?
h.	Apartment building property tax accrued and assessed but not paid as of date of death	1,3

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