[shirleysol]

Greetings!

My brother was the successor trustee/executor of my mother's estate. She died in 2003 He agreed to split the sale of a FL property between the 4 siblings in exchange for the cash bequests left to the other 3. Property sold in 2008 - was rental business prior to my mother's death, not operating as a business after she died

Due to some estate issues, we received only part of the proceeds in Dec 2008 or Jan 2009 -- we expect the remaining proceeds in 2009. My brother paid all capital gains taxes on the sale on his 2008 taxes. We have not received a 1099-S, or anything else from the trust regarding these proceeds.

My questions:

1) How do the other 3 siblings show these proceeds
2) Will we owe anything -- the brother who is the executor lives in FL, the rest of us live in NY

Help, please!
Thanks,
Shirley

[AtlantaTaxExpert]

Shirley:

If the capital gains was paid by your brother on HIS taxes, then he made an error if the rental property belonged to your mother's estate. Capital assets have their basis "stepped up" to the current fair market value on the date of the decedent's death, so it is likely that there was little, if any, capital gain.

Now, to answer your questions:

1) Since these are distributions from the estate, the siblings do not show the proceeds! Any tracking or tax reporting should have already been done by the estate.

2) No.

[shirleysol]

Thanks so much!

Shirley

[AtlantaTaxExpert]

Glad to help!