@Kristina5 wrote:
When the accounts were distributed, they were transferred in-kind. So nothing was actually cashed out. Does the increase in value constitute 'income?' Also, if his house increased in value from when he passed away until the time we sold it, does that appreciated value count as well?
If the investments (that had appreciated) were transferred in-kind, that does not count as income; it would only count if the estate had actually sold the investments prior to distributing them to the beneficiaries (or the investments generated interest or dividend income).
With respect to the house, any gain would have to be reported if the estate sold the house.
