How to fill out 1099-S for Sale an inherited Home

[jbasiljr9]

I am the Executor of my mother's estate.  My Brother and I are selling my mother's home as 50/50 beneficiaries with home still deeded to my mother.  Does the closing attorney send each of us separate 1099-S forms with only our share of the proceeds, or does he send the 1099-S in the name of the estate with the total proceeds?   If he does the latter, then we'll both have to enter 50% of the proceeds.  TurboTax may let us file the return, but it may which may trigger an audit with the IRS.

[M-MTax]

Ask the closing agent - the attorney. If the estate has an EIN and the house is being sold out of the estate then the 1099-S will usually have the title of the estate - the personal rep- and its TIN.

[jbasiljr9]

Thanks for the reply.  A few more follow up questions:

My Mother's estate does have an EIN.  Would I have to get TurboTax business and file a 1041 for her estate?  If so, then my brother and I don't have to report the home sale on our returns, any taxes due would be paid from her estate return.  Is that true?

I'm assuming the proceeds of the home sale would go into her estate account.  How and when would I distribute that money to mine and my brother's accounts?

[M-MTax]

You could use TT Business to do the 1041 for the estate.

If the estate pays any tax due on any gain then the distribution to you and your brother is tax free.

If you distribute the gain to you and your brother via K-1s then both of you would report the gain on your personal tax returns.