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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: inheritance of house - sale Date: 1/13/2013 11:38 AM
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Yes. Oddly, the first ones had no taxable income and now the one for 2012 does. I plan on calling the CPA to find out why. Personally, I don't think he knows exactly what he is doing!

Just because taxable income is different doesn't mean that the CPA doesn't know what he is doing.

The simplest explanation maybe that the rent has increased. There may have been repairs or other non-reoccuring expenses that aren't depreciated.


That's not the simplest explanation. An Estate is not a pass-through entity. It only issues K-1s when there is a distribution of cash or property to the beneficiary and/or in the final year of the Estate.

If the executor elected not distribute anything to the beneficiary, any income would be taxed at the Estate level. In years when distributions occur, the income is distribtued to the beneficary to the extent that cash/property was received and taxed at the beneficiary level.

Ira
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