There often are taxes due and owing in a California probate. Make sure you work with a tax professional to get them done right. Here are the biggies to keep in mind:
Estate Taxes: It’s the biggest tax, potentially, but few people have to worry about it. The current exemption level is $5,120,000. However, the law is set to revert to $1,000,000 on January 1, 2013 so stay tuned for that!
Decedent’s Final Income Taxes: Typically the decedent’s final IRS form 1040 and California Franchise Tax Board form 540 are due April 15th just like anybody else.
Estate Fiduciary Return: The IRS form 1041 and FTB form 541 are typically due one year after death and run on a fiscal year.
Property Taxes: They are typically do in December. The key with property taxes is getting your parent-child exemption form filed if it’s a parent-child transfer. This has to be done before the property is sold or you could face a supplemental property tax bill long after the probate is over!
Work with professionals and get it done right! -John