Deceased taxpayer

Forum|Forum|3 years ago
February 12, 2023
1 reply
24 views

Hello,

My client is deceased, passing in 2022. Subsequent to his passing, his personal residence was sold by the executor of his estate in 2022. A 1099-S was generated under the Estate's TIN. The Transferor's name is the name of the estate.

With that, how do I report the Sale of a Principal Residence (taxpayer eligible for the exclusion)? Do I complete a Federal 1041 under the Estate's TIN? Given that the 1099 is not under the taxpayer's SS#, I'm thinking I cannot report on a 1040.

Any assistance is very much appreciated.

ProSeries Basic

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Best answer by Camp1040

Yes, if the 1041 is a final return report the sale on the 1041 and issue K-1's to the beneficiaries showing any gain or loss, this all assumes their are not any other estate related transactions.

Camp1040Answer

Level 10

Yes, if the 1041 is a final return report the sale on the 1041 and issue K-1's to the beneficiaries showing any gain or loss, this all assumes their are not any other estate related transactions.

K

kjm1059Author

Level 3

Thank you for your assistance. Big help.

M

mm1

Level 5

Understand that it is no longer a sale of a principal residence. It is just the estate selling the asset so it goes on Schedule D. The Estate got a stepped up basis to what the house was worth when the taxpayer died. If it was sold shortly after his/her death then the selling price is considered to be the fair market value. Therefore, you would have a loss on the sale equal to any fixup costs and any closing costs at sale.

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