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Income Tax filing on deceased family member

travelplanner70

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A family member passed away in 2014. Income tax forms for "the estate of..."were filed for 2014. The only asset of the estate that still had to be settled in 2015 was the sale of a home (valued at less than $150k). All necessary estate forms were filed in 2015. Does an Income Tax form need to be filed for 2015? A form from the house buyer's attorney was just sent to the estate which states how much 2015 property tax on the house was paid by his client at the time of closing which would need to be known by the estate only if the estate were filing Income Tax returns and taking real estate taxes as a deduction - at least that is how I figure it.

Can someone clear up whether Tax returns need to be filed in this case? In case it is important, the state in which this happened is New Jersey.

Thank you so much.
 

Jason245

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A family member passed away in 2014. Income tax forms for "the estate of..."were filed for 2014. The only asset of the estate that still had to be settled in 2015 was the sale of a home (valued at less than $150k). All necessary estate forms were filed in 2015. Does an Income Tax form need to be filed for 2015? A form from the house buyer's attorney was just sent to the estate which states how much 2015 property tax on the house was paid by his client at the time of closing which would need to be known by the estate only if the estate were filing Income Tax returns and taking real estate taxes as a deduction - at least that is how I figure it.

Can someone clear up whether Tax returns need to be filed in this case? In case it is important, the state in which this happened is New Jersey.

Thank you so much.
I would recommend consulting with a cpa.

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SmithOp

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tfalk

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I could be wrong and I'm not a CPA but I've been down the same street, also in NJ....

My understanding would be that for 2014, a 1040 should have been filed for the income/etc up until the day the person died. After that, an estate should have been created with an associated Tax ID Number (TIN). A 1041 should have been filed under the estate TIN for income/etc from the day the person died until the end of the 2014 tax year. For 2015, a final 1041 would be filed for the estate TIN covering the sale of the house and any other income/expenses for the year, assuming the estate closes in 2015. That is basically what I had to do.

In my case, mom passed in May 2014, fortunately her house was sold in January 2014 so all that stuff was included in her final 1040.
 

rapmarks

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I could be wrong and I'm not a CPA but I've been down the same street, also in NJ....

My understanding would be that for 2014, a 1040 should have been filed for the income/etc up until the day the person died. After that, an estate should have been created with an associated Tax ID Number (TIN). A 1041 should have been filed under the estate TIN for income/etc from the day the person died until the end of the 2014 tax year. For 2015, a final 1041 would be filed for the estate TIN covering the sale of the house and any other income/expenses for the year, assuming the estate closes in 2015. That is basically what I had to do.

In my case, mom passed in May 2014, fortunately her house was sold in January 2014 so all that stuff was included in her final 1040.

this is correct but the CPA who handled my aunt's estate said if the amount was under a certain amount, we could just file under her social for that year. We did have to do as stated for my MIL.
 

zinger1457

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If you received a 1099-S form for the sale of a house it needs to be reported on a tax return, if not then it typically doesn't.
 
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