Quote:
Originally Posted by BigJim
How do I avoid paying taxes on the house money when I deposit the check into my account? I do have an IRS trust number that my lawyer obtained. Should I open a new checking account for dealing with this?
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I've handled a couple estates yrs ago and memory is a little shaky but...
I seem to remember the separate acct should be in the estate name w/ the Fed tax # you rec'd. All cash should be deposited and be distributed through this acct.
I enlisted the help of an accountant as I had to file tax returns for the acct / estate.
Per previous comments basis for home & equities is "stepped up" to date of death or other date close so there should be little / no tax due for home sale.
The estate pays the tax due not the receiving parties.