Hi, I will be filing taxes for my deceased father's estate and have a couple of questions. My father and step-mother were married and owned a paid off home together. Their will states that when one passes away, the other is in charge of the estate until the other passes away and then the executors take charge. My dad passed away in January 2023 and my step-mom passed away in July 2023. Question 1) Would the stepped up basis for the home be considered the time of my step-mom's death (July 2023)? Or, would my dad's 1/2 of the estate have a stepped up basis based off of his death in January 2023? The estate sold the home in October 2023 so would think that we would use the stepped up basis from July 2023 and there would be $0 capital gains to the estate. Question 2) If there is no capital gains because of this, is there is a need to file a 1041 and $0 taxable income k-1 to the descendants?
Thank You for you input,
Larry
