Leland, NC asked in Tax Law for North Carolina

Q: A NY estate received the balance of an IRA to distribute to heirs and received 1099-R. How is distribution reported?

The estate was used as a pass-thru only.

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James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: In this case, the estate should report the distribution of the IRA balance on a final income tax return for the estate, which is typically filed using IRS Form 1041. The distribution should be reported as income on the estate's tax return, and any tax liability should be settled from the estate's assets before distributing the remaining assets to the heirs. It's advisable to consult with a tax professional or accountant to ensure proper reporting and compliance with tax regulations.

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