topic Selling my deceased mom home and land in Deductions & credits

Selling my deceased mom home and land

Info4464 — Tue, 18 Feb 2025 00:59:00 GMT

My mom died in 2022 and we sold her home and land and 2024 and received a 1099S. The two properties together is less than 250,000 .. What is my tax obligation in closing out her estate? I received half of the proceeds from the sale of the properties. Am I responsible for reporting it in my personal tax return?

Re: Selling my deceased mom home and land

pk — Tue, 18 Feb 2025 01:46:32 GMT

@Info4464 I am sorry for your loss.

To be able to answer this we need more info:

(a) did you establish an estate for her ( i,e, got an EIN from the IRS ) or was this an informal set-up and you are the executor of the Estate ?

(d) Assuming that there was no EIN obtained for the Estate, any gains during the period through distribution to the beneficiaries is taxable income to the estate. So if selling the assets by the estate results in gain Sale proceeds ( -- Sales Price LESS any allowable expenses) LESS Basis ( stepped up value per state laws + any improvements )

(e) Such Tax can be paid at the estate level or at the beneficiary level

Does this make sense ? Have I answered your query

Re: Selling my deceased mom home and land

Info4464 — Wed, 19 Feb 2025 18:24:41 GMT

Thanks yes we had to create an ein number and tie to a bank account with that ein number for the funds to be deposited to the account. I distributed the funds to the beneficiaries...

Re: Selling my deceased mom home and land

pk — Thu, 20 Feb 2025 00:25:15 GMT

@Info4464 , based on your answers , I suspect that the 1099-S was issued in one of your names. If it was issued in your name only then

(a) you can each recognize 1/2 the gain ( if any ) and pay the taxes on that. Just keep your records and so if challenged , you can show that the 1099-S was in error ( for TIN ) purposes and that the gains have been taken care of between the inheritors,

(b) depending on the amount of gain the inheritor with the lower taxable income, recognize the gain from the sale and pay taxes on it and then settle with the other inheritor(s).

Does this make sense ?

Is there more I can do for you ?

Re: Selling my deceased mom home and land

Info4464 — Thu, 20 Feb 2025 02:27:18 GMT

Thanks the 1099 s was issued to the estate of my mom's name and the heirs wasnt listed.