Excluding gain of sale for a home sold by estate

[cadillac54868]

my mother died in 2014... in 2015 we put her house into an estate and sold it. This was the only income for 2015 for the estate. does the estate qualify for the exclusion of income from the sale? The estate received a 1099-S

[Anonymous_ · Accepted solution]

" does the estate qualify for the exclusion of income from the sale?"

No, the estate does not qualify for the Section 121 Home Sale Exclusion. However, the basis for the house is the fair market value on the date of death - see IRC §1014(b)(1) - so any gain should be minimal and the estate may even have a loss after selling expenses are factored into the equation.