The distributions were NOT expenses of the sale ... that would be incorrect. What should have happened is that they would all have been put on the deed to the property and then all of them would have gotten a 1099-S for their part of the sale. In any case, after the cost of sale, how much could the property have really netted if it was sold shortly after death ? And since the gain is all long term the tax bill should have been small if any ... you did use the date of death value for the cost basis correct ?
In this situation may I suggest you complete the return without the sale and make note of the refund/bal due then ... add the sale and do the same. See what the difference is and divide it by all the parties and that is what he should have withheld from the distributions he made or how much they now all owe him.
