Missing Schedule K-1

[lgfitzgerald]

My brother and I inherited property after our mother passed away in 2021 and have capital gains from the sale.  We are still awaiting the Schedule K-1 form to file our taxes.  Our sister is the executor of the estate and is not keeping us informed on when we can expect to receive the form.  It appears that I will have to request an extension to file my 2022 taxes.  What do I use as the amount to estimate what I will owe -- the full amount of the capital gains or an estimate of the net gains (less expenses for realtor commission and preparation of the house for the sale)?

[AmyC]

Use the net to determine your taxable income when you file the  4868 extension. Remember, the extension is for paperwork, not money due. All payments are due April 18.

[tagteam]

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@lgfitzgerald wrote:

What do I use as the amount to estimate what I will owe -- the full amount of the capital gains or an estimate of the net gains (less expenses for realtor commission and preparation of the house for the sale)?

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If you have the relevant figures, you can use the net gains but note that "fix-up expenses" and certain preparation expenses are neither deductible nor added to the basis of the property.

Also note that your gain will be long-term capital gain (assuming there was no business or rental use of the property).

[lgfitzgerald]

We sold the property less than a year after she passed away....wouldn't that be a short term capital gain?

[tagteam]

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@lgfitzgerald wrote:

We sold the property less than a year after she passed away....wouldn't that be a short term capital gain?

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No. The holding period for property acquired from a decedent is automatically long-term per Section 1223(9).