@KrisD15,
Her husband did not have a will and the mortgage company would not put it in her name. His two siblings and my mother were listed as heirs to the estate in probate court. The home was sold at auction for 160,000 in March 2022. The company used the proceeds of the sale to pay off the remainder of the mortgage. Then, the excess was put in the estate in June 2024, but the estate was already considered insolvent by that time. Neither of the siblings want anything to do with the proceeds, so they removed themselves from the pot.
The fair market value of the home at the time of his death was $158,300.
She started living in the home in 2013 but moved in with me in July 2021.
Since the foreclosure and sale occurred in 2022, TT is saying the information should not be reported in the 2024 tax return even though the proceeds were received in 2024 and the 1099-S is for 2024. I'm just really confused at how to proceed.
