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If there ends up being an estate tax, it is paid by the estate. As for the beneficiaries, it depends on what the estate does with the assets and what it distributes to the heirs and when. If it both sells the farm and distributes the cash in its final year, the heirs pay any cap gains tax on their portion. If it sells and doesn't distribute in the same year, it pays any cap gains. You can't really answer the client's questions because there are too many unknowns here. I'm not sure I'd like a client who is counting her money before her parents pass away. Hope my kids aren't doing that.

Since the returns will be paper filed, no point in using the estate bank account because paper checks will be issued anyway (no direct deposit). There must be an EIN because a bank account couldn't be opened without a TIN. It doesn't go on the 1040 unless there is income paid after the death but reported to the decedent. For example, a brokerage account may report the whole year worth of dividends to the decedent, in which case you put the whole amount on the 1040 and then back out the amount paid after death, using the explanation "IRD to be reported by EIN...." That won't be an issue until 2023. Don't worry about confusing CT or IRS. IRS doesn't pay much attention to state entries, and CT won't complain if you report income to them.

Read every chance I get. Read, read, study and read. Hardly ever bored, but not retired and have no intention of ever being fully. Tax returns are still coming in for 22.

oh my ! thank you! I never would have thought this number was printed! Always a secret! Best!! Darlene

See Pub 559 If the amount the brother would inherit is substantial and would be subject to the gift tax if he gave it to the mother, they should look into disclaiming the inheritance to avoid the gift tax. This must be done in writing within 9 months (see https://www.law.cornell.edu/uscode/text/26/2518)

I would just add the fuel and insurance expenses to the $ amount on the 1099 NEC for the total revenue, then deduct the fuel and insurance as expenses. Actually this would be a better presentation since the IRS is looking for revenue to equal or exceed the 1099 NEC amount. I wouldn't worry about correcting the 1099 NEC for 2022. However I would advise your client to have these expenses added to his 2023 1099 NEC.