For the First Five Months of Its Existence (August Through

question 35

Essay

For the first five months of its existence (August through December 2008), the Estate of Christine Lowry had gross income (net of expenses)of $7,000 per month. For January through July 2009, the executor estimates that the estate will have gross income (net of expenses)totaling $5,000. The estate's sole beneficiary is Christine's son, Jonathan, who is a calendar-year taxpayer. Jonathan incurred a large NOL from his sole proprietorship years ago, and $34,000 of the NOL carryover remains but expires at the end of 2008. During 2008, Jonathan received only $5,000 of income from part-time employment. What tax issues should the executor of Christine's estate consider with respect to the reporting of the estate's income?

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Definitions:

Talcott Parsons

An influential American sociologist known for his development of sociological theory, particularly regarding the role of social structures and the importance of societal equilibrium.

Fictive Kin

Close relations with people we consider “like family” but who are not related to us by blood or marriage.

Fictive Kin

Non-biological relationships that are recognized as functionally equivalent to family ties due to their emotional or social significance.

Nuclear Family

A family unit consisting of two parents and their children, considered the smallest, most basic social unit in many societies.