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Get your taxes done using TurboTax
If the estate received the proceeds and they were deposited in the estate account (presumably with an account that bears the EIN of the estate), then a Form 1041 for the estate should be filed that includes the sales transaction.
If the estate sold the house at a loss, and the property was held for investment purposes or rental use (e.g., a beneficiary did not reside in the house), then the loss could be distributed (passed through) to the beneficiaries on the K-1s generated by preparing Form 1041.
See https://www.irs.gov/publications/p559#en_US_2019_publink100099687
March 21, 2020
10:22 AM