Question
how to handle estate home sale proceeds
When my father in law passed in 2022, we established a EIN for the estate. A few months later we sold the home and the received a 1099S for the sale. The 1099 is in the name of the estate. The home sold for no gain as the FMV stepped up to market at the time of the death. The cash received from the sale was divided between the 3 children. Does the cash given to each child have to be entered as a distribution even though there was no gain on the sale of the home?
