On Wed, 21 Jan 2009 14:16:40 EST, Alan <sfcnm-mtm[at]yahoo.com> wrote:

- quote -


Thanks for the reply. That does answer the question. Again, thank you.


Since it appears that people may be a little put out over this question,
I offer this explanation below. I apologize for any undue effort (or
discomfort) it may have caused.

The question arose because I didn't see where USG interest would be
reported to non-NY beneficiaries. It is not split out on the 1041 K-1.
I do not see provision for it on the MA E-3. It IS accounted for on the
NY K-1 (though not listed separately). So, I thought it might belong on
the MA 2K-1. But, as you say, this is not the case.

G

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George wrote:
- quote -

Estate K-1s. That being said, now that I have looked.. I don't
understand it.

MA requires a resident individual to report income from an
estate. It gets reported on Line 7. The individual completes
Schedule E-3. The data for the E-3 comes from the Federal K-1.

I see no requirement from the State of MA for any entity from
another state of the union to provide a unique MA K-1 for its
residents.

I looked at five other states here in the western USA and I find
no requirement for individual state K-1s from out of state estates.

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"George" <gbeccles[at]verizon.net> wrote in message
news:9l4an4l5gvpc0agdneeqstk05ckr70lr4r[at]4ax.com...
- quote -

OK, perhaps I missed something in the OP - I've been known to do that from
time to time.

For the sake of clarity, I'll outline any other assumptions I may make.

There is NO REQUIREMENT for the estate to produce a MA K-1.

There IS a requirement for the estate to produce a Federal K-1 with
sufficient information so that the beneficiaries can file complete and
accurate tax returns. This would include disclosure of the various TYPES of
income that is passing through.

With no malice towards you personally (here comes an assumption) it sounds
like either you are NOT a tax professional or are a tax pro who does not do
much pass-through work. If either of these apply to you I strongly urge you
to run - do NOT walk - to a tax pro who does pass-through work. That is
going to be the ONLY way you'll know the returns are prepared correctly.
The K-1s should include supplement information that properly and accurately
discloses the TYPES of income, deductions and credits that pass
through -that is the ONLY way the recipients can prepare their returns
correctly.

This forum is NOT the place to learn taxation of any kind, especially pass
through taxation. It IS a great place to get some basic guidance and
clarity on how a particular issue is dealt with and it provides a wonderful
area for the exchange of information - BUT it is NOT a substitute for a
qualified professional.

Good luck,
Gene E. Utterback, EA, RFC, ABA

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In article <9l4an4l5gvpc0agdneeqstk05ckr70lr4r[at]4ax.com> ,
George <gbeccles[at]verizon.net> wrote:

- quote -

Or not not. It's the casual beneficiaries who've made the decisions to
live in these "out of it" states, whose incompatible (and thus badly
designed and ill chosen) tax laws are primarily responsible for creating
these unreasonable burdens.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mon, 19 Jan 2009 16:48:47 EST, "Gene E. Utterback, EA, RFC, ABA"
<gene[at]alliancetax.com> wrote:

- quote -

As you say, all activity is in NY. So, everyone has to file a NY return
(resident or non-resident, as the case may be). No issue there.

My greater concern is with the MA state returns that MA beneficiaries
will have to file. These need to include the estate distribution. The
fed K-1 documents this, but doesn't itemize the USG (T-bill) interest
.... which would be exempt from MA tax. The NY K-1 doesn't itemize it
either: it just provides a computed "adjustment" to your NY income.

Obviously, I can provide the correct amount. But, it wouldn't be in any
'official' form (ie, a K-1). Further, the actual MA K-1 form (2K-1,
IIRC) has a column for "MA adjustments". In NY's case, eliminating the
USG interest causes a proportionate decrease in the estate's (IT-205)
allowed deductions. Who can say what MA might do?

Or not. As I said, it seems like a considerable burden on the estate,
if it has to provide state-of-residence K-1's for out-of-state
beneficiaries. But, it would be a probably more unreasonable burden to
leave it to the casual beneficiary to deal with.

G

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"George" <gbeccles[at]verizon.net> wrote in message
news:q5r1n4hb0q5thlfabq2pc6b6p5kpk6ko8h[at]4ax.com...
- quote -

The estate is required to supply K-1s based on where the estate is either
located or has conducted business. Since the estate is in NY, and since
you've said nothing to indicate that any business was conducted anywhere
other than NY, a NY K-1 is all that is due.

Now, some of the beneficiaries MAY have to file NY tax returns to accout for
their share of NY income and pay any NY taxes that may be due, but that is
something they do on their end, not on the estate's end.

Most beneficiaries won't like this, primarily because they won't understand
it, but think of it this way - for all practical purposes each beneficiary
now has some financial activity from NY (simple as that).

Good luck,
Gene E. Utterback, EA, RFC, ABA

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I am executor for my mother's (NY) estate. Some beneficiaries live in
another state. (Call it Massachusetts.) The software I used (TaxCut
Business) generates Federal and NY K-1's. That's fine. But, my
understanding is that the MA ppl also need a MA 'schedule 2K-1'. I
haven't found a way to get that out of TaxCut, starting with a NY
estate.

We can solve this, in our case - it's not a lot of money, everyone is
cooperative, etc. But, in general, is the estate required to provide
state K-1's for every state a beneficiary might live it? That seems
like a lot to ask. OTOH, it doesn't seem reasonable to ask the
'typical' beneficiary to pick up the slack.

I'd appreciate any light ppl could shed on this.

Thanks,
George

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >