Working on a form 1041 and in part there was the sale of a home. The income / profit is showing up as a capital gains(and that looks ridiculuosly high).
Can i take the home exclusion since the home was lived in by the decendent for 30+years and was sold almost immediatly after the death.
If I can, where and how.
Also does the 1041 estate pay the taxes or the beniciary (K1) pay the tax
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If was sold as soon as you mentioned, I would just go with FMV on the date of death equal to the selling price.
Dead people dont sell homes, so no exclusions, no matter how long they lived in it.
Youve got stepped up basis for the sale of the house (which is even better!), you dont need any exclusions.
Thanks!! I guess I will then have to find out what the Fair Market value was at the time of sale, correct? and then I can use as my basis, Correct?
If that is correct, I greatly appreciate your help
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