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Home Sale Worksheet Software Error

Forum|Forum|1 year ago
December 28, 2024
3 replies
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CLIENT BACKGROUND: 2023 Married Filing Joint; 2024 husband died 4/24, house sold 12/18/24, wife died 12/20/24.

When completing the form home sales worksheet, question 16:

16 Check if you are a widower who has not remarried and this home sale was within 2 years of your spouses death and the spouse qualified for the exclusion immediately before their death. ( I checked this box)

There is an error for checking this box. The notation says "Widower should not be checked when the filing status is married filing joint"

I think this error is wrong unless spouse 2 isn't a widower which I think she is! You do file married filing joint if both spouses died in the same year.

IRS: Married filing jointly if you’re married or if your spouse passed away during the year.

ProSeries Professional

This topic has been closed for replies.

Best answer by IRonMaN

If the tax liability doesn't change whether she is a widow or whether she is reporting the sale as a joint filer - no harm, no foul - ignore the box. Sometimes when filing a tax return you have to go with substance over form.

George4Tacks

Level 15

"16 Check if you are a widower who has not remarried and this home sale was within 2 years of your spouses death and the spouse qualified for the exclusion immediately before their death. ( I checked this box)"

Why did you check the box? You are filing a joint tax return for two people that both died in the same year. The widower is not filing a return.

Did you take into account step up in basis on death of the husband? Possibly the sale of home does not technically even need to be reported. Was there a 1099-S?

Yes she is a widow. She is not filing as a widow. She and her husband are filing, but with her death the signature on the return will not be either of their signatures. Who's gonna sign this return?

Answers are easy. Questions are hard!

G

GeorgiaRe TiredAuthor

Level 4

The date she sold the house after her husband died, it was only her house, she was alive and indeed a widower. 12/31/24 She was not alive. I guess that depends on interpretation.

Husband never owed the house at all. Sorry, should have clarified. No step up.

Widows elects Married Filing Jointly. There's no box for Widower.

For the year someone dies, you just write DECEASED and the return has an executor or personal representative sign it.

I guess I can leave 16 blank but it seems she is a widower when the house is sold.

IRonMaNAnswer

Level 15

If the tax liability doesn't change whether she is a widow or whether she is reporting the sale as a joint filer - no harm, no foul - ignore the box. Sometimes when filing a tax return you have to go with substance over form.

Slava Ukraini!

BobKamman

Level 15

But then, I'm not sure what you mean by this: "2023 Married Filing Joint; 2024 husband died 4/24 . . .wife died 12/20/24". What does 2023 have to do with it? Did husband die in April 2024, or on April 24 of 2023?

IRonMaN

Level 15

I think we were just pointing out that they have filed jointly in the past.

Slava Ukraini!

BobKamman

Level 15

@IRonMaN wrote:

I think we were just pointing out that they have filed jointly in the past.

Which of course is irrelevant. Like answering that Question 16.

Skylane

Intuit Community Champion

Assuming house was jointly owned and wife inherits from husband, then they file MFJ final return reporting income through 12/20/24 (including sale of house). If all other conditions are met they eligible for 500k exclusion. She should also be eligible for stepped up basis for the inherited property. Q16 does not apply.

income after wife’s DOD would be reported on f1041.

If at first you don’t succeed…..find a workaround

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