How many tax returns required for deceased person?

[Tzonni]

I filed returns for my brother the year (2021) he passed away and again in 2022 because I had to show how his assets were distributed to beneficiaries. He has a house that is not paid off. Our nephew lives in house and paying mortgage.  There is no rental income being collected.  Do I have to file a third return?

[TimS5]

The answer your question is you may need to file more returns, just not 1040's on your brothers behalf.  The important question is who currently owns the home.  Upon the death of your brother, the home would either go into trust (a Form 1041 would need to be filed) or be passed to beneficiaries as set out in his will or according to state law.   The trust or beneficiaries would be the responsible party to report the house income or loss.  The fact that the nephew is paying the mortgage payments could constitute rental income to the trust or beneficiaries, assuming that the nephew is not the sole beneficiary.   Other factors that will need to be taken into account if this indeed results in a rental situation include is the property being rented a fair market value for the area.