At Pacific Tax & Financial Group, we offer expert help with the preparation of 706 Estate tax returns and annual 1041 trust tax returns. We can handle
Estate Portability Election
Starting in 2011 a surviving spouse can elect to pick up his/her deceased spouse’s unused estate tax exemption and add it to their $11.4 million estate tax free balance. The portability election effectively allows a couple to double up their tax-free estate allowance. We can help you with filing the portability election.
Fiduciary Income Tax Returns
Fiduciary income tax returns (Form 1041) is an income tax return that is required to be filed for trusts, estates and some other legal entities to properly report the earnings of the trusts and estates after the date of death of the taxpayer. If applicable the 1041 tax return also allocates the taxable earnings of the trust or estate to the beneficiary per the legal document that controls the decedent’s estate. The 1041 tax return is responsible for issuing the K-1’s to the beneficiaries to report the taxable income.
Gift Tax Returns
A gift tax return is generally required to be filed if the taxpayer gifts more than the annual IRS gifting allowance to any one person. The annual gift tax exclusion is currently at $15,000 for 2019 and will be indexed for inflation by the IRS.