Contact Usdo I need to file a form 1041- My aunt passed in 2001 in Washington DC, she was married and my mom was her only living sibling. My mom passed in 2010. In 2013 my aunts husband decided to sale her house (was only in aunts name). so he had to open up an estate since his name was not on the house.
the house sold this year. we had to open an estate in my moms name in NC. DC tax and 1041 was done this year for my aunts estate. I had to get a EIN number for the estate and the letter said I have to file a 1041 by 10/15/2016. we received 23,458 to split with 4 of us and the husband received 33,458.
my mother never file taxes and was in a nursing home when she passed. this money is from the sale of aunts house only and 1/2 of what was left after house was paid off and taxes,attorney fees, etc was paid. so, so we need to file a 1041. I am the personal representative of my mom's estate.
my mother never file taxes and was in a nursing home when she passed. this money is from the sale of aunts house only and 1/2 of what was left after house was paid off and taxes,attorney fees, etc was paid. so, so we need to file a 1041. I am the personal representative of my mom's estate.
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Tax Professional Answers
John Stancil
Federal law states that any estate with gross income of more than $600 must file a return. However, since you mom passed in 2010, she (or her estate) cannot inherit any property. When she died, any right to receive her assets would have been determined by the will, or by law. So there should not be any estate return for your mom. Each of you would report the sale of the house on your own return, most likely with a capital loss on the sale. All this is made more complex by the fact that you aunt died in 2001, title should have passed at that point, rather than remaining in her name.
I would file a 1041 for your Mom's estate as a zero return and include your net share of the house sale proceeds on your 1040, Schedule D. The basis in the house would be the fair market value as of the date of you aunt's death or her cost basis, whichever is higher. You would pay tax only on the excess of sale proceeds above your share of the basis. If a loss, it would be a deductible capital loss. North Carolina does not have an estate tax as of 2013 so I would not worry about that aspect.
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400 weeks ago
I would file a 1041 for your Mom's estate as a zero return and include your net share of the house sale proceeds on your 1040, Schedule D. The basis in the house would be the fair market value as of the date of you aunt's death or her cost basis, whichever is higher. You would pay tax only on the excess of sale proceeds above your share of the basis. If a loss, it would be a deductible capital loss. North Carolina does not have an estate tax as of 2013 so I would not worry about that aspect.