Can I use form 1041 in this situation

Forum|Forum|2 years ago
January 31, 2024
1 reply
8 views

Son sold deceased father's house in California during 2023. Father was a Non-Resident Alien who did NOT have an ITIN or SSN. At the time of the sale, there was no EIN and the escrow holder withheld 15% of the price at closing per IRS regulations. Son is a US Resident and capital gain on the sale would result in taxes being less than the 15% amount that was withheld. Do I use Form 1041 and is the son eligible for a refund of the difference?

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Best answer by BobKamman

You may have a loss after selling expenses. Apply for the EIN now and file a 1041 (consider whether, if it's a gain, you can use a fiscal year ending in 2024 to delay taxes for the beneficiaries).

BobKamman

Level 15

The father died before the sale? Who signed the deed? From what you describe, this was a domestic estate. Why would there be a capital gain? How long from the father's death to the selling date?

D

DaveliasAuthor

Level 3

Father died before the son sold the property. Son signed the deed as the executor of the father's estate. Increase (minor) in FMV from date of death until the sale. Unsure of exact time frame as file was referred by Probate Real Estate Agent. Believed to be approximately 1.5 years from death to sale

BobKammanAnswer

Level 15

You may have a loss after selling expenses. Apply for the EIN now and file a 1041 (consider whether, if it's a gain, you can use a fiscal year ending in 2024 to delay taxes for the beneficiaries).

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