My mother in law died in 2017. During 2018 the heirs transferred the trust to their control and sold a house and some stock. Do I need to file a return for the sales?

[Coleen3 · Accepted solution]

Yes, if there was a gain. A 1099-B will be issued to the owner of the stock and the IRS as well. The IRS will look at the proceeds and if the form is not reported you will get a letter. It is on the tax return that you determine gain or loss on the sale.

As far as the house goes, your basis will be the Fair Market Value on the date of death. If you sold it quickly, you may not have had a gain. However, if you received a1099-S for the sale, you must report it.