the house isn't actually in my name yet I paid the full property taxes on it, I am receiving the rent for it from the tenants and paying the repairs, but I don't know if that will influence anything.
That's not quite right. Until you legally own the house (and you did not own it at all in 2020) you can't receive the rent. It's not yet your money. The house, if not in probate or transferred to the estate yet, is still reported on your mother's 1040 tax return. If it was transferred to the estate, then all the rental stuff is reported on the 1041 estate return for 2020 from the time of your mother's passing.
All rental income received goes into the estate account. This is something that if the PA lawyer did not already set up, using the excuse of COVID, then you should fire them immediately if not sooner. They're just soaking you and the estate for all they can get. Using COVID as the excuse is a bunch of BS. I lost count of the number of estates that have been dealt with and dissolved 100% on line without anyone ever stepping foot into a courthouse for *anything*. No exceptions.
So bottom line is, all rental income received in 2020 is *NOT* yours to keep yet. It goes into the estate. All repairs and other rental expenses are *NOT* paid by you. They are paid by the estate. You will *NOT* report anything concerning this rental on your 2020 tax return. It all gets reported on the 1041 estate return.
Until that rental property is in your name, you *MUST* follow your mother's will as well as the laws of the state where your mother lived. Even if there was no will, you must still follow the laws of the state where your mother claimed residence. To a point, it does not matter that the property is in a non-resident state.
I engaged a lawyer out there
Why? Do you think local lawyers in your area never handle these situations with out-of-state assets? Probate lawyers handles this stuff all the time. Find a local lawyer. They can handle it just fine, if not better than a PA lawyer.
