Decedent Estate and Final 1040 - 2026

2 IRS CE/CTEC/NASBA CPE*

A client dies and the practitioner inherits a sequence of decisions: what income belongs on the final 1040 versus the estate's 1041, who signs each return, what basis applies, whether to elect a fiscal year, whether to combine a revocable trust with the estate under §645, whether to file a 706 just to preserve portability. Mistakes are often uncorrectable — losses that die with the decedent, a missed §691(c) deduction, an IRD item on the wrong return, a closed portability election.

The program covers identifying IRD, allocating income and deductions between the 1040 and 1041, personal representative authority and signing rules, FEIN and accounting-method elections, basis at death for jointly held property and pass-through interests, treatment of the decedent's capital losses and NOLs, the §645 election, the 65-day rule, and post-mortem RMD rules under the final SECURE regulations — the EDB/NEDB/NDB framework, the 10-year window with annual RMDs when death occurs on or after the RBD, and the year-of-death RMD. Form 1310 refund delays and decedent identity protection are addressed alongside.

For EAs, CPAs, and tax attorneys preparing final 1040s and decedent 1041s.

IRS Program Description
This program provides a look into the preparation and filing of a final individual tax return (Form 1040) for a deceased individual and the corresponding establishment of the decedent’s estate and the filing of the first Form 1041, U.S. Income Tax Return for Estates and Trusts. Participants will examine how income and deductions are allocated between Forms 1040 and 1041. The program will also introduce various elections available for reporting certain items, as well as provide compliance guidelines for the tax professional.

NASBA Learning Objectives
Upon completion of this program, participants will be able to:
• Identify the requirements for the filing of the final return of the decedent and the estate Form 1041.
• Differentiate the items of income and deduction that are to be reported on the decedent’s final personal return and the estate Form 1041.
• Assist the executor or personal representative of the deceased in gathering the necessary information and documentation.
• Determine the utilization of various elections that may be available to minimize the tax burden of the estate or beneficiaries.
• Understand the common issues and compliance items encountered in the preparation of Forms 1040 and 1041 for a deceased individual.

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*Self-Study recording not available for NASBA CPE credit.

NASBA Field of Study: Taxes

IRS Program #: 7Q3WU-T-
CTEC Course #: 6248-CE-