At Molen & Associates, we understand that estate taxes can be a complex and confusing process. That’s why we’re here to help. Our experienced tax professionals can guide you through the process step-by-step, ensuring that your return is filed correctly and on time.

Estate taxes are imposed by the federal government on the transfer of property from one person to another. In most cases, the tax is levied on the value of the deceased person’s estate. However, there are some exceptions. For example, if the estate is being transferred to a surviving spouse or charity, the tax may not be applicable.

Does an Estate Need to File a Federal Tax Return?

If the estate generates more than $600 in annual gross income, you are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts. An estate may also need to pay quarterly estimated taxes.

How Do I File An Estate Tax Return?

The first step in preparing for estate taxes is to determine if you are liable for the tax. This can be done by contacting the Internal Revenue Service (IRS) or your local tax authority. If you are liable for the tax, you will need to file a return with the IRS. The return must be filed within nine months of the date of death. 

Once you have determined that you are liable for estate taxes, you will need to gather all of the necessary documentation. This includes a copy of the death certificate, as well as any wills or trusts that have been created. You will also need to provide a detailed list of all assets that are being transferred as part of the estate. Finally, you will need to obtain tax clearance from the IRS before the transfer can take place. 

Once all of the paperwork has been gathered and completed, it’s time to file your return. This can be done online through the IRS website or by mail. If you choose to file by mail, be sure to include all required documentation and forms. After your return has been processed, you will receive a notice from the IRS indicating whether or not you owe any taxes. 

Estate Tax Preparation at Molen & Associates

Estate taxes can be a complex and daunting task, but with proper preparation they don’t have to be. At Molen & Associates, our team of experienced tax professionals can help you every step of the way, from determining if you owe any taxes to filing your return and everything in between. Contact us today to learn more about our services and how we can help you prepare for estate taxes in Houston, Texas.