Estate Sale

[JRP3]

I received a 1099-s for the sale of my mothers home who died in 2019, with me as the transferor.  I am the executor of the estate.  The home was sold in 2019, and the proceeds were deposited in the estate account.  I have two other siblings that will share in the proceeds.  The home was sold at a loss, how do i report this sale?  The home was always her residence.  

[LinaJ2020]

Here are the steps below:  ( You would prorate the cost basis of the house based on the percentage of your portion of the proceeds over the total amount)  In your case, maybe divide it by three if equally share.

In TurboTax online, 

• Sign in to your account, select Pick up where you left off
• In the Search box, at the right upper corner, type in 1099-s, sale of property other than main home, then Enter   
• Select Jump to 1099-s, sale of property other than main home
• On-screen, Did you sell any investments in 2019? answer Yes
• Follow prompts

[tagteam]

If the estate received the proceeds and they were deposited in the estate account (presumably with an account that bears the EIN of the estate), then a Form 1041 for the estate should be filed that includes the sales transaction.

If the estate sold the house at a loss, and the property was held for investment purposes or rental use (e.g., a beneficiary did not reside in the house), then the loss could be distributed (passed through) to the beneficiaries on the K-1s generated by preparing Form 1041.

See https://www.irs.gov/publications/p559#en_US_2019_publink100099687

[JRP3]

Yes, the estate account is under a different EIN. The 1099s I received as executor has my SSN on it, not the estate EIN.  Is this correct?  Do I need to put it on my tax return?

[tagteam · Accepted solution]

@JRP3 You could request that the closing agent issue a corrected 1099-S with the estate's EIN since that is where the proceeds were deposited and the proceeds belonged to the estate, not to you personally.

Failing that, you could report the proceeds on your personal income tax return noting that you received the proceeds as nominee for the estate.