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By: Scott Grossman on October 18th, 2016

When Should a Final Income Tax Return Be Filed in California?

The personal representative ensures the decedent’s final income tax return is filed before April 15th. This is applicable if the decedent died during that previous taxable year.

Suppose the person passed away in the beginning of the current year before filing a return for the previous year. Then the personal representative will see a return is filed immediately for income during the previous year, and a final return will be filed before April 15th of the next year for income generated in the early months of the current year.

Fiduciary Income Tax Returns

Income produced from assets in the decedent’s estate is taxable just like personal income. The income is filed using federal form 1041 and California form 541. These are the fiduciary income tax returns.

If an estate is going under California probate, then it is a requirement to file fiduciary income tax returns. California probate of an estate can take a long period of time. During this time, income generated by the assets must be reported before distributing. If the personal representative sells assets, there may be a tax levied on the capital gain.

If the estate is distributed without passing through probate, the beneficiaries report the fiduciary income when filing their tax return.

Do you still have questions regarding fiduciary income tax returns? We know this process can be confusing and difficult. Talk to San Diego estate planning and probate attorney Scott Grossman about your situation and the questions you have. Call our lawyers at (951) 683-3704 or (888) 443-6590 for your FREE 30-minute telephone consultation. Also, order our FREE book The Insider’s Guide to California Probate and Trust Administration.