Yes, if what you determine the gain to be is correct, and regardless of any tax due. If there is any income within the estate for the tax year that is $600 or more, a Form 1041 must be filed.
Yes assuming the estate received the proceeds and then distributed the gain to them, each beneficiary needs the K-1 if there is income distributed to them.
The distributable net income may indicate there is no tax however if there truly was a gain, it will be distributed to the beneficiaries.
You definitely have a stepped up basis due to inheritance, and it seems you understand that, however you also say there is a gain in excess of the filing requirement.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
