Q: My mother passed away in 2013. All debts were paid and inventory done. Went through probate and all heirs were properl
distributed.. My inherited home (only) remained in the estate until I sold it in 2020 with permission from the court. Must I file taxes for the last six years for the estate? There was a little over 100k gained. Do I have to pay taxes on the sale? I did have to open an estate account recently for the proceeds as well.
A:
An estate is required to file a retuen any year it has $600 or more in income.
The property sale is reportable. It'll depend on the gain on sale whether it's taxable. It sounds like the estate sold the property 6 years after date of death so you'll likely have some gain on sale. I'd suggest you hire someone to clean up the estate returns and your personal so they all work together and you can close it all out.
Kenneth V Zichi agrees with this answer
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