What documents do I need for my late mother's last tax return?

Answer 1

Well, my advice is that you really should obtain the services of a tax preparer in your area. Reason being is that the answer to your question is not as simple as it may sound. Having said that, I would start out by obtaining a copy of her prior year tax return and using that as a guide as to what documents are needed for the current year (final) tax return. Unless she had new investments, tax activities, etc. that should be most of the docs that you need. However, in addition to her final tax return, you will also need to file what is called a Form 706 - which is her estate tax return. This basically summarizes and details all of one's assets at the time of death, assigns a fair value to all assets, and eventually determines whether 'estate tax' is due or not. Depending on your mother's accumulated wealth, and all assets that are in her name, you might have to pay this estate tax, which is in addition to the regular income tax you pay from her tax return. Like I said, you are best off seeing a tax preparer, but I would consider a more experienced one - one that specializes in estate tax returns, ESPECIALLY if your mother's accumulated wealth is significant (over $1.5M in total). By the way, sorry about your mother. This is probably the last thing on your mind right now, but hope this helps.

Answer 2

The G man maybe right if your mother was a resident of the United States of America...but this question is in the Canadian Tax section so his advise may not all apply. As far as I know there is no "Estate tax" in Canada. Any income earned from the beginning of the tax year to date of death is taxable on the estate tax return. All personal exemptions are prorated based on the days alive during the tax year. Your mothers estate may have received a CPP Death Benefit and if so, you may want to report that income on a T3 trust return, this way it will escape provincial tax. And yes, you will need a copy of the death certificate to file with the estate return. You do not have to file the return until April 30, 2007 if death occurred in 2006. Depending on your mothers taxable position will determine the appropriate way to file the estate return while minimizing tax. Your best bet is to contact an experienced tax preparer to prepare and file the return(s).

Answer 3

G-Man's advice was right on target. In addition to what he mentioned, you also might need to file Form 1041, which is a trust return. If the amount in your mother's estate is small, this probably won't be necessary, but if we're talking about an estate that could take some time to settle, the estate/trust is actually treated similarly to an individual in the eyes of the IRS. Therefore, any unearned income generated by the estate could be subject to income taxes.

Definitely, you need to seek professional tax advice on this one. I wouldn't go the franchised tax prep route on this. Now would be the time to seek the advice of a CPA or tax attorney.

Sorry about the loss of your mother. I'm sure you have plenty of other issues to deal with besides the aggravation of tax work, but I hope this advice helps you get through a difficult time.

Answer 4

You would need your mother's death certificate, I. D. and a form 2848 which is the power of attorney. Then you file the tax return and sign your name as well as your mothers name and be sure and put at the top of the 1040 the work deceased.

Answer 5

Definitely listen to G-Man! He knows what he's talking about. I can't say it any better.