If you are the surviving spouse of a decedent who passed away, you are required to file a Final Estate Tax Return. There are two ways that you can do this: either you can make a portability election to avoid paying the taxes on future income, or you can petition the local court to be appointed as executor. Either way, you must file the estate tax return as soon as possible. The final deadline is April 30 of the year after the decedent’s death.
The ATO may agree to defer filing for the deceased’s estate if the tax return is incomplete or inaccurate. Contact the ATO on 13 28 61 for more information. You can also contact Bare Cremation if you have questions about your loved one’s estate planning or administration. Their phone number is (03) 9917 3388. If you are unable to file the Final Estate Tax Return, they can help. In addition to the ATO, you can also contact Bare Cremation to handle your final estate tax return.
The Final Estate Tax Return is required if the deceased estate received income from investments or assets and the amount of income exceeds the federal tax exemption threshold ($5,600 for 2012). The final return must be filed within 11 months after the date of death. You can also use this form to report income from businesses, rental property, or any other sources. The estate must be reported using IRS Form 706.
The executor should get an estate tax identification number from the IRS. Using the decedent’s social security number is no longer sufficient. The executor should open an estate checking account in the decedent’s name and use the tax ID number. Once all of these steps have been completed, the executor can distribute the estate’s property. While it can be difficult to deal with a complex estate tax return, it’s important to understand how the estate tax system works and how the executor can avoid potential complications.
The estate of a deceased person is a separate taxable entity and requires a tax ID number. This number, called an EIN, comes in the 12-345678X format and can be applied for online, via FAX, or by mail. The executor should also prepare the deceased person’s federal and state income tax returns. The IRS publishes detailed information on this process in IRS Publication 559. This publication also includes information on the duties and responsibilities of executors.
A complete return is required if the deceased’s life insurance policy was payable to his or her children. In addition to determining the fair market value of the policy, the executor should include an estimate of the gross estate in the return. In addition, if the decedent’s assets qualified for portability, he or she should report that amount. Lastly, the executor should include the DSUE amount in the return.