So I accept the solution that the accountant should not have reported the sale value of the financial stuff on my father's 1040 for 2018 (The 1040 showed a capital gains of 0 because the accountant reported the stepped up valuation for both the sold value and the basis. That 1040 should be amended to report no capital gains entry at all.)
I believe you are saying we have two options after filing an amended 1040 for his social.
(1) File a 1041 for 2018 (it will be late, as this is in May) with the capital gains reported via the 1099B with his social on it and we also report the distribution made in 2018. But this is not the final distribution. We file a final 1041 for 2019 with the transactions for 2019 and close the estate.
(2) We not file a 1041 at all for 2018 but file a final 1041 for 2019 and include the capital gains under his social 1099B reported in 2018, as well as all income, etc and distributions.
