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.