I received a K1 form for the sale of inherited property but I haven't received funds. Why do I owe capital gains if sale proceeds are still in the estate? The executor has not distributed to heirs.
Yes it is but the executor is not that reliable… I just wanted feedback from what others may know about this. Just seems odd to pay for capital gain taxes without any distribution of it to the heirs.
I concur with Mike, but the IRS will receive a copy of the K-1 and there will be a mismatch if you do not report it.
Contact the executor for further information about the distribution.
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