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Hokieesith

Joined: 12/09/2004 Posts: 18846
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An estate has to file a tax return if if has $600 in gross income.


If the estate sold the house, that would be well over the $600 threshold. From there, the money is passed out to the beneficiaries and they don't pay any tax.

The house would get a stepped up value in the estate to FMV at date of death. So if sold within a few months, no capital gain.

(In response to this post by 81_Hokie)

Posted: 02/21/2024 at 2:27PM


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Current Thread:
 
  Income tax to estate, questions for tax geniuses here -- 81_Hokie 02/21/2024 11:02AM
  An estate has to file a tax return if if has $600 in gross income. -- Hokieesith 02/21/2024 2:27PM
  Whether you owe tax or not the rule is (per federal form 1041 instructions) -- mudshark 02/21/2024 12:05PM
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