Form 1041 U.S. Income Tax Return for Estates and Trusts 2007. Summary: This is an example of Form 1041 (2006) with items included as described in the text. Additionally, these line items are completed:

“A. Type of entity: (see instructions)--Decedent's estate” checkbox checked

“B. Number of Schedules K-1 attached (see instructions)” field contains 1

“Name of estate or trust (if a grantor type trust, see page 10 of the instructions)” field contains Estate of John R. Smith

“Name and title of fiduciary” field contains Charles R. Smith, Executor

“Number, street, and room or suite number (if a P.O. box, see page 11 of the instructions)” field contains 6406 Mayflower Street

“City or town, state, and ZIP code” field contains Juneville, Maine 00000

“C. Employer identification number” field contains 10-0123456

“D. Date entity created” field contains 4-9-06

“F. Check applicable boxes: Initial return” checkbox checked

Under “Deductions”:

“1. Interest income” field contains 2,250

“2a Total ordinary dividends” field contains 750

“2b. Qualified dividends allocable to: (1) Beneficiaries” field contains 121 “(2) Estate or trust” field contains 629

“4. Capital gain or (loss). Attach Schedule D (Form 1041” field contains 200

“8. Other income. List type and amount” line contains “IRD Salary and Vacation Pay” field contain 12,000

“9. Total income. Combine lines 1, 2a, and 3 through 8” field contains 15,200

“11. Taxes” field contains 2,250

“14. Attorney, accountant, and return preparer fees” field contains 325

“16. Total. Add line 10 through 15b” field contains 2,575

“17. Adjusted total income or (loss). Subtract line 16 from line 9. Enter here and on Schedule B, line 1” field contains 12,625

“18. Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041)” field contains 2,000

“20. Exemption” field contains 600

“21. Total deductions. Add lines 18 through 20” field contains 2,600

“22. Taxable income. Subtract line 21 from line 17. If a loss, see page 20 of the instructions” field contains 10,025

“23. Total tax (from Schedule G, line 7)” field contains 2,486

“27. Tax due. If line 25 is smaller than the total of lines 23 and 26, enter amount owed” field contains 2,486

Under “Sign Here”:

“Signature of fiduciary or officer representing fiduciary” field contains Charles R. Smith, Executor

“Date” field contains 3-24-07