The house sale: If your mother-in-law as still alive when the house was sold, the house may not have a taxable gain if she lived in the home 24 months of the immediate five years preceding the sale and if the gain is $250,000 or less. If that's the case then you do not need to report that if you did not receive a Form 1099-S.
If you did receive the form, then you may want to report the sale to show it was eligible for the home sale exclusion.
If the house was sold after your mother-in-law passed away, then the sale is potentially an inheritance reported on the return of the beneficiary. That person would not be entitled to an exclusion unless it was also their home and they lived there for the required period. Instead this would be a sale of inherited property. Inherited property has a long term holding period and has a cost basis, for the beneficiary, of the fair market value (FMV) on the date of death.
Is a deceased person entitled to 3rd stimulus check?
Yes. If you are referring to the third economic impact payment (3EIP). File Form 1310 with the tax return as the deceased taxpayer's representative. The rule is that a person who died before January 1, 2021 is not eligible.
IRS FAQs for 3EIP: Look under the question 'Will a deceased individual receive the payment?'
To cash or deposit the payment on behalf of any other individual who died in 2021:
- Include one of the following:
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