My family member died and left a will stating house to be sold and proceeds distributed to 3 family members. The property was not deeded to the 3 family members. When sold the estate distributed the proceeds equally to the 3 family members. Since the estate owned the property why do the beneficiaries have to report the proceeds of the sale on their federal and state tax returns? If they had been left cash no reporting itwould have been required. What is the difference between getting cash from a sale of property vs getting cash from the estate?
