Steve M Posted March 3, 2010 Report Share Posted March 3, 2010 Clients mother died. Only income were several 1099R's, which I placed in Other income on 1041, line 8. But she owned and lived in a house which was sold in 2009 (after her death) for $115K. How is that handled. Does she lose the Sec 121 deduction because she died? Do you include the gain from the home sale on Sch. D of the 1041? Appreciate your input. SteveM Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 3, 2010 Report Share Posted March 3, 2010 Clients mother died. Only income were several 1099R's, which I placed in Other income on 1041, line 8. But she owned and lived in a house which was sold in 2009 (after her death) for $115K. How is that handled. Does she lose the Sec 121 deduction because she died? Do you include the gain from the home sale on Sch. D of the 1041? Appreciate your input. SteveM House stepped up in basis as of DOD. Hard to believe that after selling costs there was any gain considering the real estate market this past year. Quote Link to comment Share on other sites More sharing options...
Steve M Posted March 3, 2010 Author Report Share Posted March 3, 2010 Since the house was still in the estate, why would it get "stepped up basis"? Isn't that only after it gets transferred to heirs? And if it does get stepped up basis, would it still be included on a 1041 sch. D? SteveM Quote Link to comment Share on other sites More sharing options...
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