Is an Estate Tax Return Required?

Forum|Forum|1 year ago
May 1, 2025
2 replies
8 views

I don't prepare estate returns because, thankfully, I do not deal with them often. With that said, I did investigate my question but could not find a definitive answer.

New Jersey resident passed and willed everything to her brother. Brother applied for and received a tax waiver. He sold his sisters home and the proceeds were placed into the estate along with all of other financial interests. I believe a 1041 is required but wanted to ask for any insight. Thank you.

ProSeries Professional

Best answer by BobKamman

The only issue here is whether the estate had gross income of at least $600. Sale of real estate often results in zero gross income, or a loss, when its value has not increased since date of death. So you haven't told us enough to answer your question. Does the estate have any other income? And, since the loss on the sale of the house (due to closing costs) would pass through to the beneficiary, it might help him to file a return and issue a final Schedule K-1 even if not required.

Just-Lisa-Now-

Intuit Community Champion

was it sold in his name/ssn or the estates EIN?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

GodFather

Author

Intuit Community Champion

Estates EIN. I guess I answered my own question?

BobKammanAnswer

Level 15

The only issue here is whether the estate had gross income of at least $600. Sale of real estate often results in zero gross income, or a loss, when its value has not increased since date of death. So you haven't told us enough to answer your question. Does the estate have any other income? And, since the loss on the sale of the house (due to closing costs) would pass through to the beneficiary, it might help him to file a return and issue a final Schedule K-1 even if not required.