Tax return and K1 still needed for an estate return?

[rhap4boy]

Mom passed away in 2018.  She hardly had any income.  Her assets are currently still in probate, car, house and bank assets.  The only two beneficiaries are my sister and I.  We remodeled and sold the house last year.  We also sold the car.  I know we need to file tax return for the captain gain from the step up to the sold value.

Court hearing is August 2021 this year so no distribution happening yet.

1. Is the final tax return for my mom still needed to file since she did not have any income?

2. Is K-1 still needed for me and my sister since distribution hasn't happened yet.

3.  What are some of the items that can be listed as expenses?  So far, I have accounted everything related to the house and car like remodeling cost, property tax, realtor & escrow fees, home insurance, car insurance, electrical bills, gardening maintenance, attorney fees, funerals.  Any thing else I can include?

[M-MTax]

You need to list the assets sold out of the estate and their basis although there may be little or no gain. You don't need K-1s if there are no distributions and none are required to be made. You can't deduct funeral expenses but you can deduct any expenses for conserving and maintaining estate property.

[DavidD66]

If your mother didn't have at least $12,000 of income ($13,600 if she was 65 or older) then she would not need to file a 2018 tax return.

You need to file a 2020 tax return to report the gain on the sale of the house.  If there were no distributions there are no K-1s to send out.  As for expenses/deductions, they are pretty much the same things you can deduct on a personal tax return.  The remodeling costs increase the cost basis in the house, and realtor commissions reduce the proceeds. 

You can deduct the expenses incurred by an estate for its administration either as an expense against the estate tax or against the annual income tax of the estate. You may deduct the expense from the estate's gross income in figuring the estate's income tax 

[rhap4boy]

Thank you all for answering so quick!