My mother died Dec. 3, 2020 (at the ripe old age of 101). As executor of her estate, I filed her 2020 Form 1040. I also obtained a Tax ID # for the estate. I obtained an appraisal of her home as of the date of death. The home was subsequently sold in May of 2021 for slightly less than the appraised value. The estate has received a 1099-S. Does the estate file a 1040 for Tax Year 2021? I know the 1099-S is reported to the IRS, but does the estate file or do the heirs file this information on their individual returns, even though it's a loss? I attempted to file for the estate using TurboTax, and it recognized the 2020 1040 and pre-filled the date of death. It would not accept a 2020 date of death for a 2021 filing.
