It appears the property of the deceased automatically transfers to the spouse in a community property state. It must be reported on the individual return or the estate would be responsible for reporting the cancelled debt.
An estate return is not required unless the amount of income is $600 or more, so if by chance it's less that return would not be required.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
