Three siblings sold an inherited home, we then paid the debts of the estate from proceeds counted on 1099s. How do we show this on our individual tax returns?

[DaveF1006]

If you paid debts from the estate, you will need to enter these as deductions on a 1041 estate tax return to offset income reported on the return. Once the return is complete, then K1's will be distributed to each beneficiary reflecting the amount of income and deductions made.

The 1099S is strictly reported on your personal return at the full value of your portion of the proceeds independent of the payment of debts, which is reported in your estate tax return(1041).

Please review this IRS link regarding the estate tax return and look under the section What Deductions are Available to Reduce the Estate Tax. Here debts are mentioned.

@dkfen

[ Edited 03/09/22| 04;14 PM PST]