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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 34276
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My father died in October of 2014. I am the personal

Customer Question

My father died in October of 2014. I am the personal represntitve of his estate. He owned a house that just sold last week. I filed his estate with probate after his death. I also filed his personal tax returns in 2015. He has had no other income except for the sale of his house. The title company said they will be sending a 1099. Do I need to apply for an EIN # ***** his estate and file a 1041?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.

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.

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Was the house sold for more than it was appraised for back in 2014?

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thanks

Barrister

Customer: replied 1 year ago.
No
Expert:  Barrister replied 1 year ago.

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.

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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.

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thanks

Barrister

Customer: replied 1 year ago.
Thank you for your help! The laws are confusing. 😊
Expert:  Barrister replied 1 year ago.

You are very welcome. Glad to help any time.. And yes, they are confusing...intentionally so as created by the IRS..

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thanks

Barrister

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