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.

[jesdq1]

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

[Just-Lisa-Now-]

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

[jesdq1]

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-]

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.

[jesdq1 · Accepted solution]

understood, thanks