@MrsMacAdoo wrote:From date of death to sale of stock it gained about $25,000 in value while held by the estate.
You need to file a 1041 (most likely final if all assets have been distribuited and the estate terminated).
@MrsMacAdoo wrote:Secondary question is that all proceeds are being evenly divided between my siblings and me, are K-1 forms required?
It would almost certainly result in lower tax liability if the proceeds were distributed to the beneficiaries (i.e., gain via a K-1) and allowing them to assume the tax liability rather than have the estate pay the federal income tax due.
Estate income tax rates are highly compressed with the highest bracket starting in the $15k range, which means the estate would pay the top capital gains rate of 20% plus the 3.8% NIIT starting at that level.
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