The Alabama 41 form is a tax return specifically designed for fiduciaries, such as estates and trusts, to report their income and calculate taxes owed to the state of Alabama. This form is essential for ensuring compliance with Alabama tax laws and is required for the calendar year 2006 or any fiscal year beginning in that year. Understanding the details of this form can help fiduciaries navigate their tax responsibilities effectively.
The Alabama 41 form, officially known as the Fiduciary Income Tax Return, is a crucial document for estates and trusts operating within Alabama. Designed for tax years beginning in 2006, this form allows fiduciaries to report income, deductions, and tax liabilities accurately. It covers various types of entities, including decedent's estates, simple trusts, complex trusts, and bankruptcy estates, among others. The form requires essential details such as the employer identification number, the name and address of the fiduciary, and whether the return is an initial, amended, or final submission. A complete copy of the Federal Form 1041 must accompany the Alabama 41 for it to be considered complete. Key components of the form include the computation of Alabama taxable income, special deductions available to trusts, and a section for reporting income distribution deductions. Understanding these elements is vital for ensuring compliance with Alabama tax laws, particularly in light of recent legislative changes affecting estates and trusts. The Alabama Department of Revenue provides specific instructions for completing the form, which must be filed by the designated deadlines to avoid penalties.
FORM
*0612830141*
41
2006
(Rev. 11/06)
ALABAMA DEPARTMENT OF REVENUE
Fiduciary Income Tax Return
For the calendar year 2006 or fiscal year beginning
__________________________, 2006, and ending ____________________________, ___________
Type of entity (see instructions): Decedent’s estate
Simple trust
Complex trust
Qualified disability trust
ESBT (S portion only)
Grantor type trust
Bankruptcy estate – Ch. 7
Bankruptcy estate – Ch. 11
Pooled income fund
Employer Identification Number
Name of Estate or Trust
Name and Title of Fiduciary
Address of Fiduciary (number and street)
City, State, and Zip Code
FN
Initial Return
Amended Return
Final Return
Address change
Entity has income from more than one state
Fiduciary or name change
Date entity created
Number of K-1s attached
Return is Filed on Cash Basis
Nonresident estate or trust
Trust has a nonresident beneficiary
A complete copy of the Federal Form 1041 must be attached for this return to be considered complete.
COMPUTATION OF ALABAMA TAXABLE INCOME AND NET TAX DUE
1
Alabama Adjusted Total Income or (Loss) (Schedule C, Line 18c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Special Deductions Available to Trusts:
2
Alabama Income Distribution Deduction (Schedule B, Line 16)
3
Exemption (Allowed the Estate or Trust by 40-18-19, Code of Alabama 1975)
4
Total of Special Trust Deductions (Total of Lines 2 and 3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5
Alabama Taxable Income (Line 1 less Line 4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6a
$__________________ at 2 percent (On first $500, or fraction thereof, of AL Taxable Income) . . .
6A
b$__________________ at 4 percent (On next $2,500, or fraction thereof, of AL Taxable Income) . 6B
c $__________________ at 5 percent (On all over $3,000 of AL Taxable Income)
6C
7
TOTAL INCOME TAX DUE (See instructions)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8
Credits: a Income tax paid to other states (See instructions for limitations)
8A
b Capital Credit (See instructions for limitations)
8B
c Amount paid with Form 4868A
8C
d Composite payments. Paid by __________________ TIN _____________________
8D
9
Total Credits (Total of Lines 8a through 8d)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10
NET TAX DUE (Subtract Line 9 from Line 7) PAY THIS AMOUNT IN FULL WITH RETURN
. . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11
NET REFUND (If Line 9 is larger than Line 7, enter overpayment here)
(For official use only)
CN
Returns with payments must be filed with the Alabama Department of Revenue, Individual and Corporate Tax Division, P.O. Box 327444, Montgomery, AL 36132-7444. Returns without payments must be filed with the Alabama Department of Revenue, Individual and Corporate Tax Division, P.O. Box 327440, Montgomery, AL 36132-7440, on or before April 16, 2007. (Fiscal Year Returns must be filed on or before the 15th day of the fourth month following the close of the fiscal year.)
Please
Sign
Here
I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
( )
Signature of fiduciary or officer representing fiduciary
Date
Daytime Telephone No.
Social Security Number
Paid
Preparer’s
Use Only
Preparer’s signature
Firm’s name (or yours, if self-employed) and address
Preparer’s Social Security Number
Check if
self-employed
Tel. (
)
E.I. No.
ZIP Code
*0612830241*
41 2006
Alabama Fiduciary Income Tax Return
PAGE 2
Name of estate or trust
Employer identification number
Name and title of fiduciary
SCHEDULE A – ALABAMA CHARITABLE DEDUCTION. Do not complete for a simple trust or a pooled income fund.
Amounts paid or permanently set aside for charitable purposes from gross income
Alabama tax-exempt income allocable to charitable contributions
Subtract line 2 from line1
Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes
Alabama Charitable Deduction.Add Line 3 and Line 4. Enter total here and on Page 3, Schedule C, Line 13, Column C
SCHEDULE B – COMPUTATION OF ALABAMA INCOME DISTRIBUTION DEDUCTION
Alabama Adjusted Total Income (Page 1, Lne 1)
2The amount of gain from the sale of capital assets, but only if the gain was allocated to corpus and not paid, credited,
or required to be distributed to any beneficiary during the taxable year or not included in Line 4, Schedule A (see instructions)
3 Subtract the amount entered on Line 2 from the amount entered on Line 1, and enter in Line 3
4The amount of loss from the sale of capital assets – entered as a positive number, only if the loss was not considered
in the determination of the amount to be paid, credited, or required to be distributed to any beneficiary during taxable year
Amount of tax exempt interest income excluded in computing Alabama taxable income
6
Other adjustments – see instructions
Alabama Distributable Net Income (Sum of Lines 3 through 6)
8If a complex trust, enter accounting income for the tax year as determined under the
governing instrument and applicable local law
9 Income required to be distributed currently
Other amounts paid, credited, or otherwise required to be distributed
Total distributions. add Lines 9 and 10
12
Enter the amount of tax-exempt income included on Line 11
13
Tentative income distribution deduction. Subtract Line 12 from Line 11
14
Tentative income distribution deduction. Subtract Line 5 from Line 7. If zero or less, enter -0-
15
Special Alabama Income Distribution Deduction (see instructions for applicability of the special limitation)
16Alabama Income Distribution Deduction. Enter the smallest of Line 13, Line 14, or, if applicable, Line 15,
on this line and on Page 1, Line 2. (Do not enter less than zero.)
16
CHANGE IN ALABAMA TAX LAW
CONCERNING ESTATES AND TRUSTS
The Alabama Legislature passed the Subchapter J and Business Trust Conformity Act (Act Number 2006-114) during the 2006 session. The law was retroactively effective for tax years beginning after December 31, 2004.
At the time the 2006 Form 41 was being developed, the promulgation process had begun for the regulations to implement the Act. Up-to-date information concerning the law and regulations is available on the Alabama Department of Revenue’s Web site (www.revenue.alabama.gov).
*0612830341*
PAGE 3
SCHEDULE C – COMPUTATION OF ALABAMA ADJUSTED TOTAL INCOME
Column A
Column B
Column C
AS REPORTED ON
ALABAMA
ALABAMA AMOUNT
FEDERAL FORM 1041
ADJUSTMENTS
Interest income
Ordinary dividends
Business income or (loss)
Capital gain or loss (see instructions)
Rents, royalties, partnerships, and other estates and trusts
Farm income or (loss)
Ordinary gain or (loss) from Form 4797
Other income
Total Income (Sum of Lines 1 through 8)
Ordinary Deductions:
Interest
Taxes (include federal estate and income taxes)
Fiduciary fees
Charitable deduction
Attorney, accountant, and return preparer fees
Other deductions not subject to the 2% floor
Allowable miscellaneous itemized deductions subject to the 2% floor . .
17
Total Ordinary Deductions (Sum of Lines 10 through 16)
18a
Federal Adjusted Total Income (Line 9 less Line 17 – the amount
entered on this line in Column A must equal the amount entered on
Page 1, Line 17, Form 1041)
18A
18b
Net Alabama Adjustments (Column B, Line 9 less Line 17)
18B
. . . . .
. . . . . . . . . . . . . . . . . . . .
18c
Alabama Adjusted Total Income (Column C, Line 9 less Line 17). Enter here and on Page 1, Line 1
18C
. . . .
.
19 Alabama Tax Exempt Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Attach a complete explanation, showing all computations, for each item of income or deduction included in Column B (Alabama Adjustments), include also a complete explanation and computation for the items of exempt income. See instructions.
*0612830441*
PAGE 4
SCHEDULE K – SUMMARY OF K-1 INFORMATION
TOTAL ALABAMA AMOUNT
1 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Total dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Business income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Net Alabama capital gain or loss (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Rents, royalties, partnerships, and other estates and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Farm income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Ordinary gain or (loss) from Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Alabama Tax Exempt Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10a Grantor Trust Income (Resident Beneficiaries Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10A
10b Grantor trust Deductions (Resident Beneficiaries Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10B
10c Net Grantor Trust Income (Resident Beneficiaries Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10C
11 Nonresident Beneficiary – Alabama Source Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Nonresident Beneficiary – Non-Alabama Source Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Directly apportioned deductions:
13a Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13A
13b Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13B
13c Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13C
Schedule K is a summary of the information reported on the K-1s prepared with the returns.
CHARACTER OF INCOME – In accordance with §40-18-25(b), CODE OF ALABAMA 1975, the character of the income that is reported by the beneficiary or owner of an estate or trust must reflect the same character the income possessed when the income was originally received by the estate or trust.
ALLOCATION OF THE ALABAMA INCOME DISTRIBUTION DEDUCTION – The amount entered in Page 1, Line 2 (Alabama Income Distribution Deduction) must be allocated to resident beneficiaries and owners, so that the income reported by the beneficiaries or owners will retain its character . Generally the allocation is completed in accordance with Internal Revenue Code §§652 and 662. No amount may be included in the Alabama Income Distribution Deduction which is not included in the gross income of the estate or trust. See the instructions for more guidance concerning the allocation of income to the beneficiaries and owners.
Step Parent Adoption Alabama - The Clerk of the Court is responsible for certifying the report and affixing their seal.
When engaging in a transaction involving the sale of personal property, it is essential to utilize a proper documentation method, such as the New York Bill of Sale. This document not only formalizes the transfer of ownership but also serves as a safeguard for both parties involved. For those looking to streamline this process, resources like PDF Templates Online can provide ready-made templates to ensure all necessary details are covered.
Alabama Replacement Title - All information submitted must match the surrendered Alabama title, except for address changes.
The Alabama Form 40 is a personal income tax return form used by individuals to report their income to the state. Similar to the Alabama 41 form, it requires the taxpayer to provide details about their income, deductions, and tax liabilities. Both forms necessitate the calculation of taxable income and the final tax due. The Alabama Form 40 also includes provisions for claiming credits and exemptions, making it essential for individuals to understand their tax obligations just as fiduciaries must understand theirs when filing Form 41.
The IRS Form 1041 is the federal equivalent of the Alabama 41 form. It is used by estates and trusts to report income, deductions, and tax liabilities to the federal government. Both forms require a detailed breakdown of income sources and deductions. A complete copy of the IRS Form 1041 must be attached to the Alabama 41 form for it to be considered complete. This requirement emphasizes the connection between federal and state tax reporting for fiduciaries.
For those involved in motorcycle transactions, utilizing the Texas Motorcycle Bill of Sale form is crucial for ensuring a seamless transfer of ownership. This legal document not only provides proof of the sale but also outlines key details that are necessary for registration in Texas. For more information on how to obtain this form, visit texasdocuments.net/printable-motorcycle-bill-of-sale-form.
The IRS Form 990 is another document that shares similarities with the Alabama 41 form, particularly for nonprofit organizations. Like the Alabama 41, Form 990 requires organizations to report their income and expenses. Both forms serve to provide transparency about financial activities, but while Form 41 focuses on fiduciaries managing estates and trusts, Form 990 is aimed at tax-exempt organizations. Understanding both forms is crucial for fiduciaries who may also be involved with nonprofit entities.
The Alabama Form 65 is designed for partnerships, but it shares similarities with the Alabama 41 form in terms of income distribution. Both forms require a calculation of income that is allocated to beneficiaries or partners. They both involve the reporting of deductions and credits, ensuring that all parties are aware of their tax responsibilities. Understanding the nuances between these forms can help fiduciaries navigate their obligations more effectively.
The Alabama Schedule K-1 is a document that accompanies both the Alabama 41 and Form 65. It provides detailed information about each beneficiary's share of income, deductions, and credits. Similar to the Alabama 41 form, the K-1 is critical for ensuring that beneficiaries report their income accurately on their personal tax returns. The K-1 helps maintain transparency between the fiduciary and beneficiaries, ensuring that everyone understands their tax implications.
When filling out and using the Alabama 41 form, there are several important points to keep in mind to ensure compliance and accuracy. Here are key takeaways:
These takeaways provide a solid foundation for understanding the Alabama 41 form and its requirements. Proper attention to detail will help ensure a smoother filing process.
The Alabama 41 form is the Fiduciary Income Tax Return used for reporting income generated by estates and trusts in Alabama. It is required for entities such as decedent's estates, simple trusts, complex trusts, qualified disability trusts, and others. This form must be filed for the calendar year or a specified fiscal year.
Fiduciaries managing estates or trusts that have generated income must file the Alabama 41 form. This includes administrators of decedent's estates and trustees of various types of trusts. If the entity has income from more than one state or has nonresident beneficiaries, this form is particularly important.
A complete copy of the Federal Form 1041 must be attached for the Alabama 41 form to be considered complete. This federal form provides essential information about the income and deductions of the estate or trust.
The Alabama 41 form is due on or before April 16, 2007, for calendar year filers. For those filing based on a fiscal year, the return must be submitted by the 15th day of the fourth month following the close of the fiscal year.
If you miss the filing deadline, you may incur penalties and interest on any unpaid taxes. It is advisable to file as soon as possible, even if you cannot pay the full amount due. Contact the Alabama Department of Revenue for guidance on potential penalties and options for payment arrangements.
Yes, if you discover errors or omissions after filing, you can submit an amended return using the Alabama 41 form. Be sure to indicate that it is an amended return and provide accurate information to correct any mistakes.