Question
Should Form 1041 be filed to report sale of personal home that went to probate? Is the proceed from the sale taxable to the beneficiaries? Thank you.
My client's mother bought a house in 1990, she was divorced at that time. The house was under her name even after she remarried. My client's mother passed away in April 2020. She did not have a trust, so they had to go to probate to be able to sell the property. My client was the executor of the estate. The proceeds were distributed to the 3 beneficiaries. Does she need to file 1041 for the estate of her mother to report the sale of home? Does she need to report her share from the proceeds to her tax return?
