I need help with how to file taxes for my mom who passed away last year.?

Question

I filed the 2006 return but the mutual funds weren't sold until 2007 and there will be some capital gains.

Answer 1

The 2006 income tax return (1040 form) covered everything up to the date of her passing. Any property that was sold after that date is part of her estate and would be taxed to the estate or the person(s) to whom the asset was willed or otherwise transferred. If any property was held in a trust it would be taxed as part of the trust return. It is not particularly unusual for assets to be disposed of in a manner inconsistent with estate laws which makes it difficult to determine how the taxes are to be paid. What ever you do, do not file a 2007 income tax return for you mother.

Answer 2

I assume you received the proceeds (or part of them) from the sale of the mutual funds.

The last tax return filed for a taxpayer is the year of death. Your mother's final return has already been filed.

You will report the capital gain on the mutual funds on Schedule D. Put the word "inherit" in the place of the date of acquisition. Find out the value of the funds on the date of death, and that is the amount you will put in the cost field.

You will pay long-term capital gains on the difference at a maximum rate of 15%.

Answer 3

If your Mom passed away in 2006 to whom were the mutual funds willed? If the funds weren't sold until 2007, and they were willed to you, or someone else, you need to find out what there value was on the date of her death. It seems to me that if the funds were inherited then the capital gains belong to whomever owned the funds when they were sold.

Answer 4

I am no expert on taxes. There is a phone number on the tax booklet to call. ( I don't know it off hand.) There's also the irs.gov web site. You can probably get any answers you need there. Good luck.

Answer 5

file it the same as last year, there is a space provided to say the person is deceased.

Answer 6

H&R Block.