I am currently working on form 1041 for my mom's estate. The only asset in the estate was her home. The step-up value was determined to be $287,800 at her time of death. We sold the property for $316,500.00. After deductions, the total net gain from schedule D was $4940.76. Total income on line 9 was $5281.91 (The capital gains from the home sale plus a state tax refund). Line 14 is a deduction of $4143.50 for payment to the probate attorney. On Schedule B I have a question. Line 9 says "Income required to be distributed currently". Would that be the amount of money in the estate bank account ($72807.51) (Our proceeds from the sale of the home $76609.86 plus the $341.15 tax refund, minus the $4143.50 payment to the attorney). If so, should the proceeds from the sale of her home been listed as "other income" in the income section of the form?
