Selling my deceased mom home and land

[Info4464]

My mom died in 2022 and we sold her home and land and 2024 and received a 1099S. The two properties together is less than 250,000 .. What is my tax obligation in closing out her estate? I received half of the proceeds from the sale of the properties. Am I responsible for reporting it in my personal tax return? 

[pk]

@Info4464   I am sorry for your loss.

To be able to answer this we need more info:

(a) did you establish an estate for  her   ( i,e,  got an EIN  from the IRS  ) or was this an informal  set-up and you are the  executor of the Estate ?

(d)  Assuming that there was no  EIN obtained for the Estate,  any gains during the period through distribution to  the beneficiaries is taxable income to the estate. So if selling the assets by the estate   results in gain     Sale proceeds ( -- Sales Price LESS any allowable expenses) LESS  Basis  (   stepped up  value per state laws + any improvements )

(e)  Such  Tax can be paid at the estate level or at the beneficiary level

Does this make sense  ?  Have I answered your query 

[Info4464]

Thanks yes we had to create an ein number and tie to a bank account with that ein number for the funds to be deposited to the account. I distributed the funds to the beneficiaries... 

[pk]

@Info4464 , based on your answers , I suspect that the  1099-S was issued  in one of your names.  If it was  issued  in your name only  then

(a) you can each  recognize 1/2 the gain ( if any ) and pay the taxes on that.  Just keep your records  and so if challenged , you can show  that  the 1099-S was  in error  ( for  TIN ) purposes and  that the  gains have been taken care of between the inheritors,

or

(b)  depending on the amount of gain the inheritor with the  lower  taxable income,  recognize the  gain from the sale  and pay taxes on it  and then settle with the other inheritor(s).

 Does this make sense  ?

Is there more I can do for you ?

[Info4464]

Thanks the 1099 s was issued to the estate of my mom's name and  the heirs wasnt listed.