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One point should be made - if the house is currently owned by the estate, and not by the beneficiaries of the estate, then the gain/loss would be reported directly on the estate's income tax return(form 1041), and not on your(or the other beneficiaries) individual income tax returns.

If the home is sold by the estate, it will also(in this case, but necessarily always) pay any tax due directly.

The estate's executor would then(or eventually) distribute out whatever cash and other assets are remaining to the beneficiaries according to the estate documents(will, etc)

You should check with the executor of the estate to understand the ownership of remaining assets, as well as the schedule for their distribution as well as the tax return filing, etc.
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