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Tax Deduction Consulting: 1041 Miscellaneous Deductions Hayden ID

Form 1041 is not one most people deal with, but eventually you will probably have to. 1041 miscellaneous deductions are discussed below.

Brian Burks, MBA
5660 East Franklin Rd. Suite #130
Nampa, ID
Title: Managing Partner
Company: Burks Wealth Management
Investment Advisor Rep: Yes
Registered Investor: Yes
U of Idaho/B.S. - Marketing
Boise State University - MBA
Years Experience
Years Experience: 15
Life Settlements,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Annuities,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Hourly Financial Planning Engagements,401k Rollover From Employer,Income for Life/ Preserve Principal,Life Insurance,Investment & Portfolio Management,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Accumulation Planning,Individual Income

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Jackson Hewitt Tax Service
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Boise, ID
Boise Tax PRO
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Rexburg, ID

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Ada Tax Professionals
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Liberty Tax Service
(866) 871-1040
111 S Broadway Ave # 123
Boise, ID

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Tax Deduction Consulting: 1041 Miscellaneous Deductions

1041 Miscellaneous Deductions

Form 1041 is not one most people deal with, but eventually you will probably have to. 1041 miscellaneous deductions are discussed below.

When a loved one passes away, responsibilities are passed on to others. These individuals are considered the fiduciary and hold many responsibilities for the deceased. Tax preparation is no exception to these responsibilities. For legal purposes, the fiduciary is the executor and the person in possession of the deceased person's estate. Income tax returns for estates and trusts are outlined on Form1041. The form 1041 will be reported under the fiduciary's taxpayer identification number, not the deceased's TIN. The fiduciary will complete Form 1041 and report to the IRS. The form outlines the descendant's estate, trust or bankruptcy estates. This executor of the estate is also in charge of ensuring that any taxes owed are paid in full.

The form must be reported and includes many important details. Tax details such as information about income and estate liability are included on the form. Any income that is held for future beneficiaries and even the taxable wages for household help at the said estate must be reported on this form. After completing schedule B on Form 1041, the fiduciary will be able to determine the deduction for distribution to the deceased's beneficiaries.

After this is figured, it is the responsibility of the beneficiaries and the fiduciary to determine the amount that the beneficiaries should deduct from their personal taxes. Any money that they receive from the deceased is considered taxable income and should be reported to the IRS at tax time. A Form 1041 must be filed for any deceased individual that had a gross income for the tax year of six hundred dollars or more. If the estate is on soil foreign to the US, it is not considered taxable and is subject to the countries specific laws.

An IRD, which is any income in respect to the descendent is also accounted for in Fo...

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