and paying payroll until the estate is closed or does the estate use the old ID number until the estate is closed ?
Sole owner died in May of 2014
From what I understand, the income and expense up until the DOD will be reported on Form 1040, schedule C, and the income and expense after the DOD will be reported on Form 1041, schedule C.
Is a new Federal ID number needed for the Schedule C reported on Form 1041 ? or does the schedule C reported by the estate use the old federal ID number used by the sole owner prior to his death ?
I understand that the Estate needs to get a new Federal ID number but what about the sole proprietor business that needs to continue until the estate is closed and property from the business can finally transfer to the surviving spouse and or heir.
A sole proprietorship and its owner are one and the same. When the owner dies the business also technically "dies." If the spouse or heir want to continue the business it could continue as a sole proprietorship and apply for a new taxpayer id number. You should contact an estate attorney for how to deal with the tax implications for the estate.
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