My wife's father (who was a resident of NJ) passed on July 2018. An estate was filed, and the house was sold and transferred to the new owner on January 2019. The property was sold $150,000.00 under assessed value of $269,000.00 for a total proceed of $119,000.00. The estate was granted an exception for taxes by New Jersey because the estate value was under the threshold of taxable value. This was the only asset left in the estate. Life insurance policies were paid taxes on by the recipients in 2018. There were 5 children who each received a share of the sale, and my wife received a 1099-S for the total amount. How do we handle this 1099-S? Is it taxable income? Do we split the amount between the 5 recipients?
Sincerest Thanks!
Tony
