My wife's father passed and his home is held within the estate (not bequeathed to or owned by my wife or her sisters). The sale of the home closed this week. The proceeds are to be distributed across the 3 sisters once the remaining mortgage debt is satisfied this week. The estate will not close until sometime in the fall. I have read that this money, because it is the result of the sale of a decedent's home, is not taxable - to either the estate OR the recipients. I have also read that it IS taxable as income to the recipients. And finally, I have also read that the capital gain (or loss) is taxable to the recipients - the difference between the fair market value and the selling price. before we do anything with our share of this money, we need to know what we are liable for. Thanks!
