|
Posted by ed on January 21, 2007, 4:18 pm
Please log in for more thread options
gscottm@gmail.com wrote:
> My mother died in January 2006. Her will left the $750,000
> residence (her only asset) to my brother and me.
>
> All of her income (retirement) stopped the day she died.
> 2 weeks after she died, I went to the county court and
> transferred the deed to my brother's and my name and sold
> the house in August.
>
> I am the executor. Do I need to file a form 1041 & a 1040,
> or does the 1040 suffice?
If she had any taxable income in January (see rules about
amount) you should file a 1040 for her for the time she
lived in 2006. If income limits are more than she received,
no 1040 is necessary.
Any gain on the house would be 1/2 on each of your 1040s,
Schedule D because the sale took place after changing title
(hence, after istribution from the "Estate". Since title
transfered virtually at DOD and there was no other income,
no 1041 is reaquired either.
Your basis in the house (to comopute each of your gain/loss
for the sale) is the appraised value at DOD (hope you got an
appraisal). If not, possibly you could contend the value
didn't change from DOD to date of sale, in which case you
each have a small loss of closing costs and commission for
the sale. Value of Estate below Estate Tax Exemption so no
Estate Tax form is required.
You probably don't have to file anything for her.
ed
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap