Question

How to report a 1099-s on a 1041

Forum|Forum|3 years ago
March 5, 2023
1 reply
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I received a 1099-s for the sale of my dads house of $270,000 and not sure how to report it in the 1041 form for his estate taxes.

Thanks

M-MTax

Report it on form 8949 and schedule D.

C

Cynthiad66

Also, sale of real estate for a decedent is typically reported on Form 1041 by the Estate and then carried through the 1041 K-1 to beneficiaries to report on their personal 1040 returns based on their allocation of the sale.

If the residence was not used as a personal residence, it must be reported as a capital gain or loss on Form 1041 of Schedule D.

@pmgp6q

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W

wtflanders

No, absolutely not. The 1099-S is reporting the sale of the property. The IRS has no way of knowing that that sale was not taxable unless you report it. So you need to enter the sale of the property on form 8949 and show that the sale was non-taxable due to the step-up in basis.

The part that you don't have to report on the 1041 is the distribution of already taxed funds to the heirs. That they aren't interested in as long as it is done in accordance with the terms of the will.

@wtflanders

That's what I thought, just wanted to clarify. I have entered the 1099-S and shown the stepped up basis and how most of the funds from the sale of the home have been distributed to the beneficiaries. Some of funds have been held back to pay additional trust expenses as they come up.