Unless the deceased beneficiary was a nonresident alien, a Final Estate Tax Return must be filed with the Internal Revenue Service. This document is prepared in the same way as an individual income tax return. The deceased’s income and expenses up to the time of death must be reported, as well as all credits and deductions claimed. For more information about the process, read IRS Publication 559. If you’re unsure whether to file a Final Estate Tax Return, here are some tips:
The time for filing a Final Estate Tax Return is nine months after the death of the deceased. However, if you know the value of the estate, you can extend the deadline for an additional six months. Also, remember that the date of filing a gift tax return is April 15th, and you must file it by six months after the death date. If your deceased loved one had more than one spouse, he or she will also need to file an Estate Tax Return.
Even if you’re married, filing a Final Estate Tax Return is still recommended, because if you have a significant amount of unused exemption, you can capture your spouse’s unused federal exemption amount. Revenue Procedure 2017-34 has made the process of making a late portability election easier by providing a simplified form to use. Depending on your circumstances, you have up to 24 months to file your Final Estate Tax Return.
In this case, the executor of the estate filed the Final Estate Tax Return and made the proper QDOT election. A marital deduction of $1,500,000 was allowed in the deceased’s estate. A special rule applies to certain property of a deceased person, without regard to paragraph (a)(1) of this section. In this case, Joan Cable relied on Mr. Cable to make sure the Final Estate Tax Return was filed on time.
Depending on the type of tax return, the DSUE can be as large or as small as you wish. You can apply for an automatic extension starting June 1, 2015 and ending on September 30, 2016. There are many benefits to filing a Final Estate Tax Return. However, if you’re planning to make a substantial amount of money through your estate, you should plan carefully for the tax return. This way, you can avoid paying unnecessary taxes, and your beneficiaries will be happy.
A Final Estate Tax Return can be filed by the executor of the decedent’s estate if the executor was a U.S. citizen and meets other qualifications. Portability can also be elected on behalf of the decedent’s beneficiaries. However, the appointed executor must make the election before the due date of the Final Estate Tax Return. A portability election is not required if the decedent’s estate was domiciled in another country.
