Author Topic: Tax form question  (Read 1078 times)

southern granny

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Tax form question
« on: October 20, 2016, 07:47:06 PM »
My sister died early in January 2016 so there was no income in 2016.  Her only assets were a 30k savings account and a house.  We sold the house and  put the money into an account to pay her bills.  She had paid 40k for the house and we sold it for 65 , so there is 25k capital gains. After paying all her bills there is 27k left over.    Is there a CPA or tax pro that can just tell me what forms I need to complete.  I know we need to do a 1401 but there are numerous schedules and I don't know what to do.   Do I need a professional tax preparer for such a small estate?  Thanks.

geekette

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Re: Tax form question
« Reply #1 on: October 20, 2016, 08:11:11 PM »
The basis is "stepped up" to the date of her death.  If it was worth 65k at the time of her death, then there are no capital gains to account for. 

My FIL died 2 years ago.  We're still in the process of selling his house (to extended family).  He paid some tiny amount when it was built in '58, but my DH and sister's basis is its value at the time of his death (which we're assuming to be the tax value, and we're selling it for less than that).  Other than the probate stuff (in his home county) we haven't filed anything. 
« Last Edit: October 21, 2016, 12:43:14 PM by geekette »