The IRS requires a Form 1041 in the case of any Estate that receives $600 or more in income or realized gain in one year.
If you as Executor sell the real estate with the Estate as the owner that will indeed generate more than $600 and a Form 1041 will have to be filed disclosing the sale and presumably capital gain, or capital loss. The capital gain or loss would either result in a tax liability of the Estate, or if the gain were passed to the heir on a Final Form 1041, then the capital gain tax obligation falls to the heir.
If you are the heir, it may be simpler to just register the land in your name and sell it with you as the seller.
In either case, the Cost Basis is the Fair Market Value at the time of your brother's death.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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USAR 64-67 AIS/ASA MOS 9301 - O3
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