Is an estate required to file 1099s when real estate is sold out of the estate? IRS instructions do not list an estate as an exception.

Forum|Forum|6 years ago
May 3, 2020
4 replies
33 views

House was sold out of an estate, heirs received their share of the house. Should the estate file a1099s for each heir?

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Best answer by jesdq1

If the house sold in the name of the estate, a 1099S may have been issued to the estate by the title company....you would not be issuing any 1099S to anyone.

The stepped up basis would be used on the estate return with the net gain/loss flowing out to the beneficiaries on their K-1s.

understood, thanks

Just-Lisa-Now-

Intuit Community Champion

Generally the estate would file a 1041 tax return and issue K-1s to the beneficiaries.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

jesdq1Author

Level 4

Ok. Thank you. So, would the stepped up cost basis at the date of death regarding the sale of the house be calculated on the 1041 resulting in the adjusted gain (loss) passed to the beneficiaries? And, no stepped up cost basis applied on the beneficiaries personal return because it was already calculated on the 1041? Should there be a 1099s filed in the name of the estate? Thank you

Just-Lisa-Now-

Intuit Community Champion

If the house sold in the name of the estate, a 1099S may have been issued to the estate by the title company....you would not be issuing any 1099S to anyone.

The stepped up basis would be used on the estate return with the net gain/loss flowing out to the beneficiaries on their K-1s.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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