@scheherazade_82 wrote:
....my mother's house was sold so there will be capital gains income tax on that sale that will need to be distributed across all recipients (beneficiaries) of the proceeds. Along with 3 months of income for Jan, Feb, and Mar.
@scheherazade_82
I am sorry for your loss.
This situation could be mitigated by the fact that income received prior to your mother's passing would be allocated to her on her final income tax return (1040).
Further, if your mother's house were sold shortly after her death out of the estate, then it is entirely possible that there will be little or no gain (maybe even a slight loss when taking selling expenses and closing costs into consideration). Note that any gain would be measured by the sales price (less selling expenses) less the basis in the house which would be stepped up to the fair market value as of the date of your mother's passing.
