Estate tax - Two questions

[DBRankin]

I am doing the taxes for my sister who passed away in 2024.  She lived on Social  Security and has a very simple estate.

In calendar year 2024, the family held an estate sale which raised $2644 to help cover her final expenses.  There was no more activity in 2024. 

In January 2025, we sold her house (at the tax value) and after paying off the remaining mortgage, the lawyer distributed the remaining money to my surviving sisters and me. Where I live, the house is not considered part of the estate unless specified in the will (in this case it was not).

I have not closed the estate with the county yet.  It will close late this year (2025).

I have two questions:

1. Do I need to file a 1041 for the money from the estate sale this tax year (2024).  If not, what do I need to file since there is no other income to the estate?

2. I need to file a 1041 to account for the distribution to the siblings, right?

Any help will be appreciated.

[RobertB4444]

1- No.  That isn't income.  You unloaded personal items.  It's like a garage sale - you don't need to report it.

2- Nothing.  Distributions of items that are not taxable don't have to be reported.  Make sure you dot the I's and cross the T's for the laws in your area but there are no federal forms that you need to file for this estate.

However, you and your siblings may need to report your portion of the sale of the house on your personal returns.  You will report it as a sale of a house with the amount of the proceeds that you received as a sale price and the exact same amount as the cost or 'basis' of the property sold.  

@DBRankin