Question

Estate Return

Forum|Forum|4 years ago
February 25, 2022
1 reply
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Hi,

I am the executor of my mother's estate. have filed her final personal return and I'm trying to determine if I need to file an estate return. The only asset in the estate was her home, all other assets had beneficiaries. The home was sold 3 1/2 months after her death so I believe the fair market value would be the same as the value upon death. If there was no gain and no other income do I still need to file an estate return showing the sale and zero gain?

Thank you,

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A

Anonymous_

Employee

@skcockrell62 wrote:

....If there was no gain and no other income do I still need to file an estate return showing the sale and zero gain?

Yes, particularly if the estate receives a tax reporting statement (1099-S) as a result of the sale.

Despite the fact that there may be no gain, you still need to show the sales price and the basis to show the IRS there was no gain from the sale (otherwise, the IRS only has the amount of the proceeds).

Further, unless the house was being held for personal use (e.g., a beneficiary or relative was living there), a loss on the sale, as a result of selling expenses, can be passed through to the beneficiaries.

I am sorry for your loss.