Generally speaking, any assets that your mom owned would have a "step up in basis" when she passed - meaning the adjusted basis to her estate will be the fair market value of the item on the date she passed away. Therefore, when these assets are sold at an estate sale, they rarely generate income - as the income would be the difference between the fair market value on the date she passed and the price it sold for at the estate sale, which generally is equal to or less than that fair market value set.
.
The same would be true for her home - if it transferred to her estate, it would have a step up in basis to fair market value on the date of her death - and therefore generally does not create any income when sold.
Of course, that could change somewhat if the assets are held for a period of time and appreciate in value, then sold for more than fair market value on the date of passing. Or if the house sold for more than what that value was established at.
Note that, in the event there is income that is generated after the date she passed away, that income would NOT be reported on her individual income tax return. Any taxable income that may be generated in the Estate would be reported on an Estate Tax Return, Form 1041.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
