The stocks owned by your parents, as well as the residence they owned, should have received a step-up tax basis equal to the market value in December 2020, and only the appreciation between the 2nd date of death and when the assets were sold would be subject to long-term capital gain. There was no need to dig up your parents's original purchase price. I suggest you find a qualified CPA oe EA to review the estate's Forms 1041 for 2020, 2021 and 2022 and to prepare the final 2023 form 1041. It's too late now, but an estate could have elected to file its Form 1041 on a fiscal year basis, meaning it could have elected a year end date not ending on December 31st. Please don't go back to H&R Block.
Other than the professional fees paid in 2023, the property taxes paid on their residence should be tax deductible on their final 2023 fiduciary tax return too. The maintenance costs may be subject to a 2% floor. Your new CPA/EA should be able to guide you on that. If you have any additional questions after meeting with the new tax preparer, let me know. Your attorney should know a 2023 Form 1041 was due since s/he was familiar with the size and composition of the estate because s/he needed to file an accounting with the Court in order to close the probate. I'm afraid you had received some bad advice.
