Estate Sale of Home Lived in by Beneficiary

[RaiseMyHand_01]

Filing a 1041 for Estate in TT Business. Decease date of death Mar 2016. Two Sibling beneficiaries. One of the beneficiaries lived in the home from DOD until the house was sold in 2022. I am using Step-up cost basis which results in a capital gain on the estate home that was still in the deceased name when sold. The state of NJ has already provided a tax waiver for the sale of the home, how do I handle this for Federal filing given a beneficiary lived in the home until sold, the house was not used for rental and no income was gained from the house over the6 years- is this a tax exempt situation? 

[Anonymous_ · Accepted solution]

No. Wasn't this question answered in your other post?

Re: How do I report the capital gain on an estate sale in Turbo Tax? (intuit.com)