Question

A home was inherited in early 2021 and sold in later 2021. The net from the sale of the home was the exact amount of its appraised value.

Forum|Forum|3 years ago
May 13, 2023
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The appraised value was $125,000 and the net sale price was $125,900. Do I need to report this on 2021 return?

TurboTax Live Self Employed

yes it needs to be reported. but where to report it 1041 or your 1040? if the property was owned by the estate/trust it reports the sale and then the executor/trustee has the option of paying the taxes on the 1041 or distributing the gain to the beneficiaries who would then report the k-1 on their return. if the house was distributed to the beneficiaries (title transferred) then reporting would be directly on their 1040s