Filing 706

You can always apply for an extension of the due date (6 months, I believe). This can be an extension to file, to pay the tax, or both.

Many (but not all) estate expenses can be deducted on either form 706 or on form 1041. Funeral expenses can only be deducted on form 706, but you should have a handle on these within 9 months of DOD.

We've already applied for the extension. The problem here is that the will provides for the estate to pay for transporting household items to the beneficiary. I intend to rent a truck and drive it across country with furniture and other items. It certainly seems at this point that that won't be done until after all of the forms are filed. So, do I estimate, say $2000, to rent a truck, or do I wait until I have final numbers and file an amended return?

Some can be estimated and some can't. I would recommend hiring a tax professional with estate experience if the estate has to file Form 706. This is typically not a DIY project. Certainly an estate with a value large enough to require filing should be able to afford a tax professional.

If you are talking about a Form 1041 then you can use only actual expenses paid or accrued (if the estate is on the accrual method).

-- Drew Edmundson, CPA Cary, NC

I'll certainly agree with that. As a tax and estate attorney I used to do 706's years ago. But these days they are so much more complex that I won't touch it, but always bring in a qualified CPA or EA.

Stu

There is a CPA and attorney working on the returns. But, since I am studying to be a CPA (I hope), I find this stuff interesting and lke to get the opinions of the group here. Makes me seem much more knowledgeable when I talk to the lawyers there.