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Get your taxes done using TurboTax
To clarify, when was the estate created? Was the rental income generated when the house was part of the estate or when it was still in your mom's name?
If the rental income occurred before the creation of the estate in 2021, then it will be reported on your mom's return for 2021. You will report that she is deceased and you will report all income she earned in 2021, in her name. Your house sale will be reported in 2022. Here is an excellent Turbo Tax article that addresses how to report a tax return on behalf of a deceased taxpayer.
Here is a IRS article that explains how to file a tax return for an estate. The reason why i put this here is that there are two kinds of taxes owed by an estate: One on the transfer of assets from the decedent to their beneficiaries and heirs (the estate tax), and another on income generated by assets of the decedent’s estate (the income tax). The estate tax is reported on IRS Form 706 and you may need to file this for 2021 if there was a transfer of assets that took place. You may have done this already but if not, here is a copy of the form. Turbo Tax currently does not support his form but you may download this form and complete and send it in as a stand-alone tax return.
Turbo Tax does support form 1041 though, the income tax side of it. We have a Turbo Tax Business Product that reports Trust and Estate tax returns. I don't know if you need to file it this year but you will need it for tax year 2022 for the sale of the house and other purposes.
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