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Another tricky question that isn't answered by any of the IRS publications I have reviewed: accountant can't seem to commit.

Fact: DH died 11/19/04. On that day several stock transactions (buy, sell and dividend) occurred in his accounts that were part of our living trust. (Some done by him, others on an automatic system.) On that date as well his bypass trust was created.

Question: are the transactions included in our final joint return or in his trust return? Does the actual time of death on that day have any significance?

I can understand why you might not have found the answer, but your accountant should know it...or how to find out. Without doing any research to see if there are any relevant regs or case law on the matter, the definition of the decedent's final tax year in IRS Pub. 559, Survivors, Executors, and Administrators, would seem to indicate that all transactions on the date of death belong on the final return of the decedent and not on that of the bypass trust.

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