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Re: Deceased Estate Income

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Hi,

I am doing the final tax return (hopefully) for my mothers deceased estate. As I understand it, estate income is only income earned after my mother died. eg. her bank balance was transferred into the trust account, but this is not considered income, only the interest earned on that bank account is income. Is this correct?

 

If this is correct, When I record the distribution to beneficiaries, do I include the entire amount they got eg. her bank balance plus bank interest, or only the estate income portion eg. their share of the bank interest?

 

I know I should get a tax agent to do this but last finiancial year i paid $200 to have it done and the estate didnt even have to pay tax. This financial year the estate had even less income, but there was a distrubution so I want to make sure I get it right.

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ATO Certified Response

Former Community Support

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Hi @denridder,

 

Thanks for your patience whilst we checked information regarding your query with a specialist area.

 

You only have to account for the component of the distribution that represents interest earned after death as income. Distribution of the bank account balance component from date of death has no tax consequences.

 

The beneficiaries need to record their share of the estate interest income that they have been distributed in their income tax returns as trust distributions.

 

Hope this helps, JodieH.

 

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Former Community Support

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Hi @denridder,

 

Welcome to our Community!

 

We're confirming information with a specialist area and we'll get back to you with more information as soon as possible.

 

Thanks, JodieH.

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @denridder,

 

Thanks for your patience whilst we checked information regarding your query with a specialist area.

 

You only have to account for the component of the distribution that represents interest earned after death as income. Distribution of the bank account balance component from date of death has no tax consequences.

 

The beneficiaries need to record their share of the estate interest income that they have been distributed in their income tax returns as trust distributions.

 

Hope this helps, JodieH.