Michael Jackson dead at 50!!!

[daydreamer41]

Does a dead person have to do the Income Tax Report ? If not, what happens ?

Yes, in the US, the estate must file a closing tax return before the estate is closed. Michael Jackson's estate will probably include some trusts for his children. Those trusts should be on-going, but there will be a tax return or returns if it takes more than 1 year to close the estate in which income derived from revenue sources have to be declared and taxes will be paid. The executor or personnel representative of the estate is responsible for filing the return for the deceased.

 

[Montreal Sex City]

I guess you arn't a 12 year old boy

Jon Lajoie says it best.
http://www.youtube.com/watch?v=tVACUjHn6yU

Well thanks for this one, I was wondering how to bucle up that circle.

That is just what was missing.

 

[metoo4]

So for Income Tax a dead person remains alive as long as there is revenues that are declared even for years after his death? Right? So Michael is still Alive and so is Elvis (for Revenue Dept) !

Not so. That would be insane!

The IRS clock stop when the person dies as far as that person is concerned. For tax purposes, the dead person is reputed having sold all his belonging at the time they died. After that, as soon as they accept the responsibility, the Estate takes control. A first declaration must be produced by the Estate, covering the current fiscal year till death. They are then responsible to liquidate the inheritance by paying debts, distributing the assets according to the will and producing the final tax declaration. The Estate is responsible for assets not distributed and only till they are distributed. Once distribution and payments are done, the Estate produce the final tax declaration and the Estate is dissolved as soon as the government gives the ok.

If the liquidation takes more than 1 year, tax declarations must be produced every year by the Estate, until final liquidation.

As soon as a person accept part of an inheritance, that person is responsible for whatever profits or loss related to this asset and is also responsible for taxes. At that point, it's off the Estate's plate.

In Jackson's case, for example, if his music rights were given to the kids and all legalities were met, the kids (whoever represents them) is responsible for tax declaration from the point they took possession. At that time, the Estate is no longer involved with any taxes related to the rights.