Okay so for #2, CASH that was part of the original Estate at time of death is never reported on Form 1041, right? Thus not taxable to the beneficiaries, (2children).
For #1, I followed the instructions for Home Sale worksheet and Form 8949 for Long Term Capital Gains (the Estate home remained in the decedents name from DOD in 2016 until sold in 2022). I received a 1099-S from the closing attorney and followed the instructions in Turbo Tax. To clarify no taxes were paid to the IRS at the time of closing. My question is if the Estate 1041 calculates taxes are due based on the home sale and the Estate pays the IRS the taxes when submitting the 1041then are K-1's required for the additional money distributed to the beneficiaries?
