Query-whether a sale of personal residence of a deedent is inome to the estate.
My client is the executor of an estate which has no assets other than the home of the decedent. Under court order the executor sold the home and will distribute the proeeds to the heirs. The home sold within a few months of the death of the decedent. Should the executor file a 104l listing the sale proceeds as income>??. There is probably no capital gain, since the fair market value on the date of death is close to the sales price.
Yes, it is no longer a personal residence. Because of selling costs there should be a capital loss which can be distributed to the heirs at the termination of the estate. It is long term since the property passed by way of inheritance.