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Richard, Attorney
Category: Estate Law
Satisfied Customers: 55310
Experience:  29 years of experience practicing law, including tax and estate planning.
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Are you experiences of the sale of real estae in a estae,

Customer Question

Are you experiences of the sale of real estae in a estae
JA: No. I'm the Lawyer's Assistant.
Customer: Thank you but I need a attorney
JA: What state are you in? It matters because laws vary by location.
Customer: Delaware
JA: Has anything been filed or reported?
Customer: Such as what? Probate as been filed ad a property was sold today to pay the bills of th estate and written out for deposit in the estate account.. For some odd reason my sister nd I who ingerited the property got 1099"s for the gross pric even though we did not get the money but the estate did
JA: Anything else you want the lawyer to know before I connect you?
Customer: We feel the IRS money should have been reported on the Estae's Bank account number not my sister and my social sexurity number since we did not get any money at all from the sale
Submitted: 8 months ago.
Category: Estate Law
Expert:  Richard replied 8 months ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 8 months ago.

Was the property still titled in the name of the decedent? Or, had title been title been transferred to you and your sister before the sale? Thanks!

Customer: replied 8 months ago.
After inventory were filed the property was suppose to be automatically transferred to my sister and my names but we had it put in the estate to pay debts..We did not get a penny from the transaction so why did we get 1099's stating we receive half of the gross sale?
Expert:  Richard replied 8 months ago.

Thanks for following up. I'm sorry for the delay....thanks for your patience! If the estate sold it, the 1099 should have gone to the estate rather than the two of you. BUT, it really makes no difference because there will be no tax on the sale. Unless you have the 1099 reissued in the name of the estate, you and your sister will need to report the sale on Schedule D and Form 8949 of your respective returns to be attached to the Form 1040. BUT, there will be no gain on the sale and thus no tax because the basis of the property gets adjusted to its fair market value at the time of decedent's death. The reason you must report the sale even though there is no gain is that unless you report the sale, the IRS presumes the basis is zero and treats the entire proceeds as gain.

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