Descendant wills assets (House, Car) to daughter. Daughter sells home but the 1099-S form
is issued in her name and SSN and not the estate name and EIN. Also, the
closing documents list the daughter as the seller and not the estate. My
position for filing the 1041 is that the sale does not get reported on
the 1041 but on the heirs 1040 with a stepped-up basis and a 1099-S to match.
The
attorney handling the estate wants the sale reported on the 1041 and my
position is I will file an initial and final zero 1041 to close out the estate
but I will show the sale of the home following the 1099-S trail which is the
heirs 1040.
On
average I prepare 1.5, 1041 returns per year. So to say the least I’m looking
for some reassurance on my position; the estate did not earn over $600 and the
asset was sold outside of the estate. My question, is the 1041, reporting the
home sale necessary?
