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Estate sale of decedent's house

My mother died in March 2010. I am her son and executor. I sold the house on behalf of the estate in January 2011.  From March 2010 to the January 2011, the house was occupied by some relatives of the deceased, some but not all of whom were beneficiaries. The 1099-S and bill of sale mentions the estate as the seller.  The title was not changed to the multiple beneficiaries prior to the sale.  

I am now preparing the 1041 Estate Tax Return on a fiscal year 3/1/10-2/28/11 basis.  Do I enter this as a capital gain Schedule D transaction?  Is the basis the FMV of the home at the March 2010 date of my mother's death?
    Sorry for the loss of your mom. The estate is a separate entity from the decedent and, thus, the estate "acquired" the house from the decedent (on the 1041 in TurboTax, there is a dropdown box to indicate that the asset was acquired in that manner). Any gain should, therefore, be long-term cap gain in this instance (the holding period for assets acquired from a decedent is long-term irrespective of how long the decedent held the asset).

    Regardless, it seems unusual that there was a capital gain at all here considering the short time between the date of death and the sale (only ~10 months). Was a **formal** appraisal done to establish the FMV on the date of death?
      Yes to both questions. The short-term gains should be inclued in the K-1s.
        Yes there was an appraisal shortly after time of death.  On the advice of my tax attorney, FMV and selling price were virtually identical so there was no gain and therefore no tax on the sale.  Thank you for your response.