Filing status is determined on date of death - single, H of H, married. The due date for the final income tax return - April 15 th , following the year of death. A joint return may be filed by the decedent's personal representative with the surviving spouse. With small estates without personal representative, the surviving spouse can file a joint return. Income and deductions for the decedent are normally accounted for on a cash basis prior to death on the final income tax return of the decedent.
Partnership agreement calls for termination on death of a partner.
Partnership agreement calls for continuation of partnership on death of a partner. The estate or heirs of the deceased partner will report the income or loss. Any cash distribution of profits in the year prior to death are only partner withdrawals and not income. Only deductions paid in cash prior to death. Deductions or tax credits accruable solely because of death are reported on 1041 U. S. Fiduciary Income Tax Return.