I am the court appointed personal representative for my mom's estate. My mom passed away in June, and we sold her house through the estate in December. With the stepped-up basis, we may have a loss due to the fact that housing prices dropped a lot between June and December, and we had to put in almost $10,000 in clean-up, repairs, and new flooring. Other than the house, there is no income for this estate, and I have not disbursed any funds from the estate account yet. The beneficiaries are myself and my sister.
My question is, am I even required to file a 1041 for this estate? I have been trying to confirm with a CPA or tax professional in my area, but they either do not do estate returns or they are not getting back to me.
I've read about the gain/loss being taken by the estate or passed to the beneficiaries through a K-1. Is that my decision to make or is a K-1 required? Also, since I have not disbursed the funds yet, would the K-1 apply to 2022 or 2023 taxes?
