I realize it’s unusual but you’d need to know my crazy family to understand!
My parents bought the property in Florida around 1985 or so. Dad died in 1987. Mom became the owner, with my two sisters and I on the deed as successors upon her death. While I’ve seen the deed written that way, I have no knowledge about a will. Mom passed in 2011. My oldest sister became her executor and I was not told about the property until a few weeks ago, when she realized she couldn’t sell the property without me (she tried.)
After the proceeds were calculated after broker fees and closing costs, divided by three (some $5,500 each or thereabouts,) my executor sister’s husband announced that he’s been paying the property taxes for all these years and wanted restitution from my other sister and me. That would have been $2,800 out of each of our shares. He threatened to kill the deal and let the property go into foreclosure. Anyway, I negotiated that I would only sacrifice a portion of that and we agreed that, at closing (and as reflected on the closing paperwork,) I would get $4k, my other sister would only get $2.4k, and my executor sister and her husband would get the remaining $9.5k (these are all rounded numbers...) The 1099-s in the closing package (we would each get one,) shows the selling price as $19k.
Who is this “estate” that is supposed to sort out the Form 1041 and K-1 amounts? If it’s my sister, I doubt it will happen. If it’s some legal entity, then I guess I can trust it. I just don’t want to wind up paying federal taxes based on either the full $19k or even for an assumed third of that, because I got much less than that. Thanks!
