@lizard0258 wrote:
Thank you for your reply. My younger brother is the Executor, and he did not do those steps. I don't think he knew he had to do so. My dad passed two years ago so I am not sure if he can go back and file the paperwork but I will let him know. The property is being divided between 5 siblings and if anything each year we lost money due to assessments, repairs, taxes, and such but I don't think he kept records of expenses either. It would take time for him to find the paperwork I am sure.
I would suggest that whoever was the executor or handles the sale of the property seek professional advice immediately from a tax professional that deals with estates (probably a tax attorney). Failure to file an estate tax return could make that person personally responsible unpaid tax. What needs to be filed depends on the laws of your state so you need a local professional that knows state law.
Do-it-yourself estates with property, if done incorrectly, can be a costly mistake.
Probably a form 1041 estate tax return and K-1 forms need to be filed.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
