Inherited property from a deceased parent

[MBlackmon]

My dad passed away in August 2021. I sold the property and mobile home that I inherited, in October 2022. We kept all the power and city utilities on the whole time we had it. In addition, we incurred the expense of cleaning up the home due to the method of death, suicide, and the fact that his body was 5 days old when we found him. It had to be cleaned and stripped out thoroughly. We maintained the yardwork, etc., as well. When I sold the property, I was told that I had to put the funds into an estate account, which I did. I had to obtain a tax id #, etc. How will I handle this at the end of the year on taxes? I was told I would have to file a totally separate return for the estate besides my personal return. How will one affect the other? Thank you. 

[tagteam · Accepted solution]

If the estate owned the house at the time of the sale, a return for the estate (Form 1041) will have to be filed.

See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285926

You can use TurboTax Business for that purpose, which must be installed and run in a Windows environment.

See https://turbotax.intuit.com/small-business-taxes

If you are not at all familiar with this process, you might want to contact a local tax professional.

See https://taxexperts.naea.org/listing/service/estates-gifts-trusts