Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Posts: 1
Registered: ‎04-07-2017

Estate Tax Question

Hello all,


So I have a unique situation involving an estate.


To start off - I am the Independent Administrator of my late father's estate.

He passed away in November 2015.  I became the admin (through the probate process) in March 2016.

His estate had -0- value... minus a homestead home... which we ended up selling in June 2016.

After the sale, the estate cleared ~25k.


Also, he had been retired for 2-3 years and was told by his CPA that he didn't need to file after retirement --- as he was on Social Security. (and that was his only means of income).  So his last submitted return was years ago.


My lawyer stated I would have to set aside some funds for CPA fees in 2017....  So that's what I did....and well, here I am now.



Q1.  Is that 25k taxable even though it was a homestead?

Q2. Do I need to file a tax return for him?

Q2a. If I do, how/what do I need to do?



I've found conflicting responses online.  One states I need to file no matter the amount. One says it isn't over 5 don't worry about it.  etc...


Thanks for the help! My lawyer has stopped billing therefore he is no longer any help / won't answer my questions.  ha.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Estate Tax Question

Hi JustinK05,


Welcome to the H&R Block community.


You do not need to file a tax return.  The estate tax exemption amount is over $5 million (that information is correct) so the estate is not worth anywhere near enough for the estate tax.  If the $25,000 was income to you then it goes on your tax return as a capital gain (if you sell an inherited house then any gain on the sale is income to you).  If multiple persons inherited the house then the gain is split between them.


If you have any other questions I'll be glad to help.



Senior Tax Advisor (Tampa, FL)