I am the sole beneficiary of a property that was sold by the estate. The 1099-S was made out in the estate's Employer ID Number, not to me. (Funds were then disbursed by the estate to me.) There is no capital gain due to step up in basis to fair market value on date of death. There was no gain between death and sale. This question is not about step up in basis.
My question is: Can I report this sale on my personal 1040? I don't want to do a 1041 estate return if I don't have to. The estate has no other income.
Some other forum topics say it does not need to be reported at all since net gain is zero. This is incorrect per the IRS:
IRS Publication 523, Page 16:
"You need to report the gain if ANY of the following is true:
You received a Form 1099-S. If so, you must report the sale on Form 8949 even if you have no taxable gain to report.
...."