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Form 1041-T Chandler Arizona: What You Should Know
Then John's estate may use the Allocation of Estimated Tax Payments to Beneficiaries section of Section 643 to determine when it will pay tax on John Doe's annual income of 500,000, the total of his annual gross income from January 10, 1994, to November 18, 1997, and his annual income from July 22, 1997, to October 31, 1998. The 1,250,000 gross estate is 500,000 less 150,000 in contributions for the first nine, ten and eleven years John has no taxable gain on the sale of a real property that did not yield income in the years before his death, and John no longer owns the real property and the property has been sold; the tax on John's taxable gains is 0.10 per acre that the land was worth when John disposed of it to the beneficiary (John's spouse if the deceased spouse did not die before the decedent's estate, the spouse's surviving spouse if the spouse died within 14 years of the decedent's death, and the beneficiary's child) Example: Jane Doe, the estate's beneficiary for the first nine, ten and eleven years of John's life when John died, will receive 300,000 in income in the first year that the decedent's estate pays estimated taxes; Jane inherits an 11,700 mortgage from John's will when John dies, and the homeowner's insurance on that mortgage is 600 per month, so 300,000 is less in real estate; the tax on Jane's taxable gains is 0.
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