My mother owned stock in the company she worked for. When she died, her estate sold it back to the company at its stepped up basis, so no gain on the transaction. It was the only asset in her estate. The funds from the stock sale were distriubuted out from the estate bank accoun to the heirs.
We are trying to prepare this final 1041. It should be simple? How do I enter this transaction? Under Schedule D as a short term stock sale with no gain? Will the heirs receive a K-1 even though there is no income in the estate?
Detailed guidance is most appreciated! Thank you.
