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Subject:  Re: Capital gains tax for an estate? Date:  7/6/2012  2:56 PM
Author:  TMFPMarti Number:  116406 of 130424

Yes, the house is still in my mom's name. The estate has filed tax returns each year and paid property taxes. After closing, the final tax return will be filed and the assets distributed. Per the will, the assets will be equally distributed to the heirs.

In this case, as the next return will probably be the final return, the estate won't pay capital gains tax but the heirs will? Surely the estate and the heirs wouldn't both pay capital gains tax on the same asset?

If you haven't been using an accountant for the 1041's you definitely want to use one for the final return. You want to consult with the attorney and accountant before you make your distribution. There may be quirks in state law that affect how you proceed and how you report. In addition, there may be excess expense deductions that can flow to the heirs' returns.

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