Decedent''s only asset left was a secured note/mortgage held on her home by former renter. In 2017 the individual died, her family that lived in it let the proprety go and did not pay the last 2 RE tax bills. Decedent's heirs filed for a quit claim deed and property was conveyed back to estate. Sold in 2018 at a county tax sale for 20% of original note, paid all costs and ended up with a "book" loss of about $50,000.
Q1-Can they take the loss on the property, netting all legal fees - from the note's value at the time of default? Q2-Is it a capital loss to each heir, maxed by $,3000 loss limitation? Q3-if the estate is closed out does the loss go tothe hier and they carry it over if they are limited by the $3000 maximium loss?
I am trying to help a family I am related to, but have little estate experience. Should I just hire someone?