Reference no: EM131235028
Each of the following items was incurred by José, the cash basis, calendar year decedent. Under the terms of the will, Dora took immediate ownership in all of Josée’s assets, except the dividend-paying stock. The estate received Joseé’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 may apply in some cases.
Item Incurred Form(s) Reported on
a. Wages, last paycheck ______________
b. State income tax withheld on last paycheck ______________
c. Capital gain portion of installment payment received ______________
d. Ordinary income portion of installment payment received ______________
e. Dividend income, record date was two days prior to Jose’s death ______________
f. Unrealized appreciation on a mutual fund investment ______________
g. Depreciation recapture accrued as of date of death ______________
h. Medical expenses of last illness ______________
i. Apartment building, rents accrued but not collected as of death ______________
j. Apartment building, property tax accrued and assessed but not paid as of death ______________