@Allan712 there is a lot of back and forth in this thread...... and maybe you can add more facts to what you already wrote.
What should have occured is that the Estate was the seller of the home. The capital gains should have been the sales price less the selling expenses less the market value on the date of your father's passing. Unlikely there was a gain. The mortgage balance has nothing to do with this.
That gain (or loss) should have been recoreded on Form 1041 and then a K-1 should ahve been distributed to the beneficiaries. They then report their share of the gain (or loss) on their personal tax return.
is that what occured? as asked by others, whose SSN / EIN was listed by the title compamy as the seller?
