I am trying to finish up the 1041 for my mom's estate. I think I am doing it correctly but want to double check what TurboTax and I came up with. Mostly that I didn't mess up somewhere..
The only asset was her home. It had a step-up value of $287,800.00 and sold for $316,500.00. After subtracting closing costs (not including $441.43 in property tax paid as part of the sale) there was a gain of $5,529.00 which was entered on the 1041. After subtracting the property taxes paid and the probate attorney fees, there was an adjusted total income of $896.00. After the $600.00 exemption there was taxable income of $296.00 and a tax of $30. I do have some questions. First, does the money in the estate account(the net proceeds from the home sale, and from a state tax refund) go anywhere on the 1041? Is the amount of the money, from the bank account, each beneficiary gets put on the K-1? Next, does the entire $5,529.00 that was capital gain get divided among the heirs and entered on the K-1's even though it was reduced by the subtraction of the property taxes and the probate lawyer fees? Or is it the $30 tax showing on Line 28 that gets divided.
Unfortunately, TurboTax Business doesn't support the state tax forms for estates in Oregon. So doing that is going to be an adventure.
