Land sale from an estate account

BRI991
BRI991 Member Posts: 2 Newcomer
in Income

Hello,

We had a land sale from my late mother's estate account in 2025. The estate account holds the proceeds of the transaction which will be distributed to each sibling at some point. We're hoping to have the estate closed by the end of this year or possibly 2027. Does each sibling have to document their share of the proceeds on their 2025 tax return? There was no 1099-S issued since the estate sold the property. I'm hoping someone has some guidance. thanks

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Answers

  • JMSSGV
    JMSSGV Member, Star Posts: 303 image

    The person handling the estate should be filing Form 1041 (the estate's income tax return) and should issue a Form 1041, Schedule K-1 to each beneficiary to advise them of the tax reporting for their share of the estate.

  • BRI991
    BRI991 Member Posts: 2 Newcomer

    Thanks for the information. The estate's tax preparer will be doing the return later this month. Hopefully we can get the paperwork in order before April 15th. Does the tax preparer provide this document for the beneficiaries?

  • JMSSGV
    JMSSGV Member, Star Posts: 303 image

    The person in charge of the estate (executor, administrator, trustee) is responsible for filing tax returns. Obviously he or she can delegate that to another person like the tax preparer, but it's ultimately his or her responsibility.

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