In your case, I would talk to at least a CPA if not a tax attorney simply because your name is attached to this property. Since you are not related, you do not have to file taxes for the deceased, but should send this on to the executor if you know who it is. If not, send a letter in writing to the company, and send it certified with return signature for your files, so they are on notice. But just an FYI, if you feel like taking it on, the IRS allows a personal representative to file tax returns. In the end, the IRS does not care who files the tax return, they just expect it filed. I filed for my ex-husband, even though I was not executor. I put "personal representative" after my signature, and sent a Form 56 (Notice of Fiduciary Relationship) Cancellation of debt Form 982 should be filed with form 1041 (estate income) if it was cancelled after his death. I was told by Turbo Tax CPA to put a description of income and insolvent under form 982, on line 8, where effectively the income is cancelled out by the insolvency, so the income is 0. Then file a Form 982 with that, and include an Insolvency Worksheet, even though it says to keep for your records. FYI, there is a date of cancellation listed on the 1099-C that the deceased received. The insolvency worksheet and Form 982 are figured as of the day before the cancellation of debt date on the 1099-C. Even if he got the 1099-C in the same year he died, that does not matter. If it was cancelled after he died, you will report it on Form 1041 (estate income). If it was cancelled before he died, you will report it on Form 1040. If he died, you will need to apply for an EIN (for the estate) on the IRS website. They will give the number to you immediately.
