Estate Taxes and where to begin

[BCurrier]

Good Morning all 

My dad passed away in 2021 and his home went to probate.  We transacted a sale in 2022 to my sister and the proceeds went into a Estate account.   As custodian, with an EIN, what form do I need to file?  The 1041 seems to be focused on businesses.  

The EIN letter from the IRS generating my EIN requested I file by Dec 2021, but there was nothing to file, am I in trouble?

Thanks - I just don't know where to start.

Bryan  

[tagteam · Accepted solution]

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@BCurrier wrote:

The EIN letter from the IRS generating my EIN requested I file by Dec 2021, but there was nothing to file, am I in trouble?

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Almost certainly you are not "in trouble". Since the sale did not occur until 2022, there was nothing to report in 2021 (unless the estate had income or gain from another source).

For 2022, however, a Form 1041 would be required to be filed in order to report the sale of your dad's home. 

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285942

Generally, the basis for the home would be the fair market value on the of your dad's passing and there might be little, or no, gain, on the sale (or possibly a loss) but the sale probably generated a tax reporting form (1099-S) so the transaction needs to be reported.

If you have no experience with tax reporting for estates, trusts, or pass-through entities, you might want to seek guidance from a local tax professional.

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

I am sorry for your loss.

[BCurrier]

Thank you