Whate do I do with the 1099-S from the sale of deceased mom’s home.

William R. Pelger's Trusts and Estates Legal Blogs

Licensed for 30 years

Attorney in Munhall, PA

William R. Pelger

Free initial consultation, Credit cards accepted, Fixed hourly rates

Serving Munhall, PA

  • Serving Munhall, PA

  • Free initial consultation, Credit cards accepted, Fixed hourly rates

Attorney at firm Pelger Law

Serving Munhall, PA

Free initial consultation, Credit cards accepted, Fixed hourly rates

Q: The county valued the house at $131,100 and it sold for $129,900. Doesn’t this count as a loss and therefore not income?

A: Form 1099-S is used to report gross proceeds from the sale and exchange of real estate and certain royalty payments. A 1099-S form must be provided to the recipient and a copy mailed or emailed to the IRS. Just as you would list it and attach it to a personal return, you use it on the 1041 Schedule D (decedent’s fiduciary return). You will list the stepped-up value of the house based on what the fair market value was at death. So, if you sell it within in a year of your mother’s death, it is doubtful there will much of a capital gain or loss. There are other factors needed to be known here before I could conclude that the estate will not face a capital gain. It is also relevant as to whether you received the house as a beneficiary, or sold it from the estate as executor. I would suggest that you consult with an estate attorney.

ESTATE, REAL ESTATE, SALE, CAPITAL GAIN, 1099-S, STEPPED UP VALUE.

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