Deductions & credits

Is the estate closed (i.e., terminated upon the sale of the house)?

 

A 1041 will almost certainly need to be filed if the estate receives a 1099-S.

 

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285942

 

Any gain (loss) will be measure by the difference between the selling price (less selling expenses) and the basis of the property (typically the fair market value on the date of death of the decedent).