I received a 2007 k-1 from my mother's estate. It is for the period of 2/1/07-2/1/08. Do I report the income on my 2007 return or my 2008 1040 return?

You report this income on your tax return for calendar year 2008. See page 6 of the Shareholders Instructions for Schedule K-1: http://www.irs.gov/pub/irs-pdf/i1120ssk.pdf

If you file your tax return on a calendar year basis, but the corporation files a return for a fiscal year, report the amounts on your tax return for the year in which the corporation’s fiscal year ends. For example, if the corporation’s tax year ends in February 2008, report the amounts on your 2008 tax return.