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David M. Kaufmann, CPA
1466 Adobe Falls Way
Note: This is a complicated subject. We will only touch on some topics. We recommend that you talk these issues over with an attorney and a CPA. We serve clients in Colorado and the Denver Metro area.
might be due after someone dies in Colorado?
(Note: This discussion will only deal with Colorado taxes.
Click on this link for a discussion
of federal taxes after someone has died.
Reporting of foreign gifts or
A Colorado Fiduciary Income Tax Return (Form 105) is required, if either a federal Fiduciary Income Tax Return (Form 1041) is required, or, if there is Colorado fiduciary income tax due.
Simple. The final individual or personal income tax is due on the same day if the taxpayer had not died.
Thus, if someone dies on January 1, 2022, the final Colorado Form 104 will be due on April 17th, 2023.
We have run into quite a few people who get incorrect advice on this!
Lets first answer the question, "When does the first tax year end for an estate?" The latest that it can end is the latest end of the month such that the tax year does not exceed a year. Example, if someone dies on June 15, 2022, the latest end of the estate tax year would be May 31, 2023.
There are some complex reasons why one might want to end the year sooner. Ending the year sooner might result in some tax savings.
The Colorado estate (fiduciary) income tax return is due on the 15th day of the 4th month after the end of the year. If the year ends on December 31, 2022, the due date is April 17, 2023. If the year ends on January 31, 2022, the due date is May 15, 2023.
Colorado Form 105, Colorado Fiduciary Income Tax Return, is the Colorado form for estate income taxes.
This really depends on the individual circumstances. Inheritance tax and inheritance tax rates are often misunderstood. You are welcome to call 720-493-4804 and ask for Dave.
The information contained here are simplifications of complex subjects. Talk to your CPA and attorney if you want to pursue this subject more.
If you have questions about this, do not hesitate to contact us at 720-493-4804. We primarily serve Colorado and the Denver Metro area (we have prepared trust & estate income tax returns outside of Colorado too). A large portion of my business is preparing tax returns and tax planning for trusts, estates and beneficiaries of trusts and estates.
We can answer other questions, like:
How much, if any, tax does one have to pay when they receive an inheritance?
What costs can a trustee or personal representative deduct?