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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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I keep coming back like a bad penny! Sorry to keep beating

Customer Question

Richard, I keep coming back like a bad penny! Sorry to keep beating the horse, but I continue be confused as to who to believe or whose advise to follow. I obtained an EIN number and have an appointment with H&R Block Monday afternoon to complete form 1041. My lawyer advises me that my brother had no estate per se, and that the property became mine upon his death. He further states that therefore no EIN number or 1041 form are required. I sold the property and sent the funds electronically to my niece and her son and daughter. Since the property was mine at his death and I sold same residence per my brother's wishes, I'm of the impression that I will need to file an amendment to my return to show the sale of the home. Am I right? Please advise! The lawyer said that there was no trust of any kind, or any estate!
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

No worries. Maybe I didn't understand properly. With a life estate, although the property is considered part of your brother's estate in order to qualify for the adjustment to its fair market value at death, the property did vest in you upon your brother's death. So, if that's the only asset at issue and no other income, then the estate would not need to file a return; rather, you would include the sale on your return...Schedule D and Form 8949 showing both the sale price and the adjusted basis. I'm sorry if I misunderstood the facts.