Estate Law Questions? Ask an Estate Lawyer.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes and ordinances and type out an answer or reply, but rest assured, I am working on your question.
Was the house sold for more than it was appraised for back in 2014?
Ok, then according to the IRS rules the executor must file a federal income tax return (Form 1041) if the estate has at least one of two situations: gross income for the tax year of $600 or more, or a beneficiary who is a nonresident alien.
The sale of a house is not considered income because the estate didn't "earn" the money. Dividends, interest, rental income, royalties, etc. are "income", but the sale of a house is not. So since there was no gain on the sale, there are no capital gains that would be reported either. With that said, in this situation, there would not be any 1041 necessary to be filed.
You are very welcome. Glad to help any time.. And yes, they are confusing...intentionally so as created by the IRS..