Estate Tax Question Good evening, hopefully this doesnt come across as a stupid question as I have never had to deal with this.
My siblings and I are trying to determine what, if any, tax we will have to pay when we or my deceased mothers estate taxes are due.
Facts:
-Mother passed away in Feb 2015 and left the home to myself and my two siblings.
-We covered the costs of her arrangements and bills and whatnot over the next several months while the house was up for sale.
-Home sold in July, purchased by certified check written out to the “estate of xxxxxxx (mothers name)”, not to me and my siblings by name. Home sold for less than market value so there should be no capital gains.
-Check for sale of home deposited into estate account to help fund everything during probate.
Probate is now officially closed and all debts are paid and we are ready to split what remains amongst the three of us.
We are questioning what the taxes could be on this money so we essentially know what to keep aside come tax time.
As far as I have read, the home sale is not taxable because there were no capital gains. The thing I am worried about is that since my brother (executor) had the buyer write check to the “estate of”, does that count as income to the estate meaning its now taxable even though the money came from the home inheritance which should not be taxable?
Any help would be appreciated… |