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Level 3
September 16, 2026
Question

Estate - Do have to file 1041 if Year had expenses but no income or distributions?

  • September 16, 2026
  • 1 reply
  • 8 views

In 2025 the estate had expenses for Property taxes of $3,000 and some postage expense.  No income was received and in 2025 there were no distributions.  Is a 1041 required to be filed?  If not required to be filed, should I file one anyway?

1 reply

BobKamman
Level 15
September 16, 2026

The estate could have had $599 income, and still not be required to file.  But if it is paying real estate taxes, it might be able to capitalize them, reducing the gain or adding to the loss when the property is sold, by making the Section 266 election on a timely-filed return.