@Allan712 wrote:
I Received the Form to File the Taxes on behalf of the estate which I did through Turbo Tax....
The threshold questions I have are: Exactly what did you file and what was reported? Also, how did you distribute the proceeds to each beneficiary?
It appears as if a Form 1041 for the estate (tax return for estates and trusts) should have been filed to report the sale of the house. In that event, the return should have been shown the basis of the house (the fair market value on the date of your father's passing, most likely) and the sales price less selling expenses).
If the 1041 showed a gain on sale, that gain could have been passed through to the beneficiaries on K-1s (1041) or the estate could have paid any tax due.
From the facts you stated in your post, it appears as if something went wrong, somewhere, with the reporting of the sale, most likely, centering around the figures that were reported and how they were reported.
