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reporting sale of business property after death

S-hall
Level 2

Have a rental property that was going to be sold in 2021. The property was to close on Nov 28, 2021 the owner of the property died on Nov 17, 2021. Do you report the sale on the final return of the decedent or is the sale of the rental property reported on the estate Form 1041.

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3 Comments 3
Just-Lisa-Now-
Level 15
Level 15
they cant sell something personally if they're dead.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
S-hall
Level 2

The property went into an estate on date of death. However they closed on the property with the trustees. I wasn't sure if the decedent has to claim it because it was sold but didn't close until after his death and the proceeds went into the estate. 

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IRonMaN
Level 15

"proceeds went into the estate"

That pretty much tells you where the sale is to be reported.  Also keep in mind that little thing called "step up in basis" when preparing the return.


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