Filing for Deceased

Forum|Forum|2 years ago
April 3, 2024
2 replies
11 views

My mom passed October 2023. I filed her taxes for 2024.

In 2024, we sold her house and I'm wanting to know if there's a way to figure out how much her taxes might be and how much we should hold in reserve in her trust account.

Is there a simple way to figure out 2024's tax return?

Ask the Experts - MetLife IV - April 2024

RobertB4444

Level 15

Because you sold the house within six months of her passing then the house is valued at what it was when it was sold since that is a reasonable length of time after your mother's passing and the market wasn't fluctuating dramatically. The value of the house is seen to be exactly what you sold it for, so there is no gain on the sale and no taxable income.

If the trust owned the house there may be a loss on the sale, however. You can take expenses necessary to prepare the house for sale as well as fees for the sale as expenses. If this results in a loss that loss can be passed through to the trust beneficiaries for them to take on their personal returns.

Sorry for your loss.

[Edited 4/4/24 12:10PM PST]

@annettemoyle

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annettemoyleAuthor

Level 2

I do not understand. The house was paid for long ago. It sold at today's prices far more than what is originally cost to purchase.

Yes, there were some needed repairs, but those costs were minimal.

From the title company, we received tax form under mom's EIN (not SSN). I assumed taxes for 2024 need to be filed under that EIN (and not anyone who inherited money from the same). Am I not correct?

How can we calculate approximately how much taxes will be for a house sale that was many times greater than the initial purchase price?

This is my first experience with this situation, so I may not be asking the right questions or asking them correctly.

RobertB4444

Level 15

The house sold for (my example) $200,000. Because it sold within six months of your mom's death it was worth exactly what it sold for - $200,000. There is no tax due on that.

When you enter it into TurboTax the system will ask you what your basis in the house was. Basis just means the value of the house. In your case the basis of the house is the exact same as the sales price.

You will also be able to enter the expenses that you had for the sale. These can turn into a deduction for you and your siblings.

These things can be very complicated. You may want to consult a tax professional.

@annettemoyle

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Anonymous_

Level 15

@annettemoyle wrote:

...I'm wanting to know if there's a way to figure out how much her taxes might be and how much we should hold in reserve in her trust account.

I am sorry for your loss.

Was the house held in her trust as well? I presume it was and, if so, and the trust had no tax liability for the 2023 calendar year, then estimated tax payments aren't required.

Estimated tax payments aren't required from:

An estate of a domestic decedent or a domestic trust that had no tax liability for the full 12-month 2023 tax year;
A decedent's estate for any tax year ending before the date that is 2 years after the decedent's death; or
A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent's estate under the will (or, if no will is admitted to probate, is the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is 2 years after the decedent's death.