There are a couple of options, even if the estate was closed in 2020, you can file a Form 1041 for 2025 because it received reportable income in 2025.
First nominee the 1099 from your deceased mother's social security number (SSN) to the estate EIN. Report the income on the estate return and deduct your expenses on that return. Any profit would be required to be distributed to beneficiaries (K-1) based on the instructions:
- Distributable net income (DNI). The income distribution deduction allowable to estates and trusts for amounts paid, credited, or required to be distributed to beneficiaries is limited to DNI. This amount, which is figured on Schedule B, line 7, is also used to determine how much of an amount paid, credited, or required to be distributed to a beneficiary will be includible in their gross income. IRS Instructions-Form 1041 2025 (page 4)
Nominee Returns. This is how the IRS knows what you are doing.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list mother as the payer and the other owner (estate), as the recipient. On Form 1096, list mother as the nominee filer, not the original payer. The nominee/executor is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here: (use the one you received)
@ron6612
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
