Form 1041

[ranggg2012]

I’m the executor of my sister‘s estate. She passed away April 8, 2024. I have filed her personal taxes and now all that’s left. Is to report the sale of her home. Is that considered income? Or do I just report it on form 8949 that transfers over to schedule D? And then generate a K-1 form for the only beneficiary? Does the beneficiary then also have to claim the proceeds or any other money they will receive? I have to say I’m extremely confused and I have read the instructions, looked at questions and answers online, I have a program that’s supposed to help me and I just feel like I’m going in circles.

[M-MTax · Accepted solution]

Yes, the sale is reported on Form 8949 and Schedule D and, if this is the final return, the K-1 should show the distribution to the beneficiary of any gain recognized. The distribution of corpus (principal) is tax free to the beneficiary.