Fillable Form 41 - Oregon Fiduciary Income Tax Return

Form 41 instructions

Unused loss carryovers. IRC sections 172 and 1212 apply to

an estate or trust and the beneficiaries. Attach a copy of the

federal loss carryover schedule to Form 41.

Simple trusts without capital gains or losses, or estates ter-

minating in this tax year, must complete Form 41, lines 2, 5a,

Income taxable to the grantor or substantial owner. Any

and 6 on the front, and lines 22–42 on the back.

part of trust income taxable to the grantor or another person

If there are no distributions to the beneficiary, begin on line 4.

under IRC sections 671 through 678 isn’t taxed on a fiduciary

return. However, the income information must be shown

Line 5a. Enter the fiduciary adjustment allocable to the

on a statement attached to Form 1041. Attach a statement

beneficiary (ORS 316.287 and OAR 150-316.287). If the

adjustment is a subtraction, the beneficiary’s share is

to Form 41 showing Oregon additions and subtractions to

limited to an amount equal to the distribution of income

federal taxable income. If the grantor trust is exempt from fil-

taxable on the beneficiary’s individual return. A fiduciary

ing Form 1041 under IRC regulation 1.671-4, it’s also exempt

adjustment addition increases the beneficiary’s income.

from filing Form 41 (OAR 150-316.382).

The beneficiary’s share of the addition is limited as follows:

Returns for estates and complex trusts. On Oregon Form 41,

Subtract the taxable portion of the distribution from the total

amount of the distribution. The balance is the beneficiary’s

lines 1 through 7, allocate the income and Oregon modifi-

share, unless the amount of the addition is smaller.

cations between the estate or trust and the beneficiary if an

authorized distribution was made or required during the tax

Any amount of a fiduciary adjustment not allocable to a ben-

eficiary is an adjustment to the fiduciary’s taxable income.

year. The fiduciary must provide the beneficiary with income

distribution and Oregon fiduciary adjustment information

Line 6. A copy of federal Form 1041, Schedule K-1 or an

on federal Form 1041, Schedule K-1. Attach a copy of each

acceptable substitute, for each beneficiary, must be filed

K-1 to Form 41. See instructions for line 6.

with Form 41. The total of the income and Oregon fiduciary

adjustment reported on all Schedules K-1 must equal the

Transferee. The money and property of a taxpayer who has

amount entered on line 6. Each beneficiary’s share of the

died passes to a person, estate or trust, called the transferee.

fiduciary adjustment must either be shown at the bottom

The transferee may be liable for the obligations and liabilities

of their K-1 on a blank line or on a separate sheet attached

of the deceased person. The liability includes tax, interest,

to the K-1. Mark it “Oregon fiduciary addition (or subtrac-

and penalty. The transferee’s liability is limited to the value

tion)” and write in the amount the beneficiary is to report.

Do not break the fiduciary adjustment down into separate

of the property acquired from the decedent (ORS 314.310).

components.

Extension of time for filing

Example: An Oregon fiduciary adjustment includes a $3,300

federal tax subtraction, a $600 U.S. government interest

For tax returns due on or after January 1, 2009, the extension

subtraction, and a $1,300 Oregon tax addition. The amount

of time to file a fiduciary tax return is five months.

reported to the beneficiary is an Oregon fiduciary adjust-

ment of <$2,600>.

If you need more time to file, send your payment and

Form 41-V (Oregon Fiduciary Tax Payment Voucher) to:

If you have a capital gain, which is not distributed to the

beneficiaries, line 2 plus line 5a will not equal line 6. Attach

Oregon Department of Revenue, PO Box 14110, Salem OR

a statement to your return and explain there is an undistrib-

97309-0910.

uted capital gain on Form 1041, Schedule B, line 6.

When you make a payment, consider the 41-V payment

Line 8. Tax. Use the 2012 rate schedule on Form 41, page 2,

voucher as your extension request. If you are not making

to figure the tax.

an Oregon payment, complete and file the federal extension

Line 9a. Enter the amount of Net Long-Term Capital Gains

Form 7004 with the IRS. Keep a copy of your complete fed-

(NLTCG) from Schedule 1, column B, line 25.

eral extension form. Check the “Extension to file” box on

Form 41, page 1. If we need a copy of your extension, we’ll

Line 9b. Multiply line 9a by 5 percent to figure the reduced

tax on the liquidated farm assets.

ask you to provide one.

Line 11. Tax credits. Identify the credit claimed in the space

An extension of time to file your return is not an exten-

provided. The amount claimed cannot be greater than the

sion of time to pay your tax. All tax due must be paid by

tax on line 10. Do not include payments or claim of right

the original due date of the return.

credit on line 11; see line 14.

When you file your return

Credit for income taxes paid to other states

• If applicable, check the box on the front of Form 41 indi-

Resident estates and trusts. Generally, you can claim this

cating “Extension to file.”

credit if the estate or trust has income that is taxed by both

• Include the amount you paid with Form 41-V, Oregon

Oregon and another state. An Oregon resident trust that has

Fiduciary Tax Payment Voucher, on line 14.

income taxed by Arizona, California, Indiana, or Virginia

150-101-041 (Rev. 10-12)

Form 41 - Oregon Fiduciary Income Tax Return - 2012 Page 3

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