topic Capitol gains/loses in Get your taxes done using TurboTax

Capitol gains/loses

Timorshannon — Wed, 05 Mar 2025 02:26:02 GMT

I’ve read some of the posts on this, but im confused still.

father in law passed away jan 2024, the estate is in probate, there are 2 beneficiaries. The property sold January 2025. Probate will not settle until next year due to a legal matter. When do we file for gains or losses? Probate court valued at more then what it was sold for and it appraised for.

Re: Capitol gains/loses

robtm — Wed, 05 Mar 2025 02:51:24 GMT

You would not pay taxes (if any) until the year the

Probate is settled.

Re: Capitol gains/loses

Timorshannon — Wed, 05 Mar 2025 15:51:11 GMT

Okay thank you. So i dont do anything for the deceased persons taxes until probate is done? And also ours correct. The deceased persons attorney was telling to take care of capitol gains.

Re: Capitol gains/loses

MonikaK1 — Wed, 05 Mar 2025 17:21:40 GMT

The responsible party can file the final personal income tax return (1040) for 2024, covering income from January 1 until date of death. See this IRS webpage for more information. The tax returns for the deceased and their estate are separate. The estate is a separate entity that is created upon the death of the decedent. The probate process is a legal procedure that involves transferring assets to the beneficiaries of the deceased.

An estate administrator must file the final tax return for a deceased person separate from their estate income tax return (Form 1041). Form 1041 for 2024 has the same due date as Form 1040 (April 15, 2025). This return reports income tax on income generated by assets of the estate of the deceased after the date of death. If the estate generates more than $600 in annual gross income, you are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts. An estate may also need to pay quarterly estimated taxes.

Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required if the gross estate of the decedent, increased by the decedent’s adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the decedent’s death. See this IRS webpage for more information.

There may also be state requirements, depending on your state.

@Timorshannon