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Estate and 1095c?

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    Estate and 1095c?

    Ok, I am lost as to this issue. TP deceased may 2017. Only asset was personal residence(mom was sole heir and sold house 12-07-2017). TP had some AR from work done before death(self employed). $ received after death belong on the 1041.

    Mom did not follow ordering of payouts from deceased meaning she overpaid limits set by Virginia . My problem is I found 2 Forms 1095-c marked as follows. Date of event 12-05-2017 and 11-24-2017 both with code G and issued in TP's #. As best we can tell TP was not insolvent at time of death. Question is do I report these on final 1040 or final 1041? Your responses and thoughts appreciated

    #2
    If we are talking about a 1099 C then it should be reported on the 1040 but the estate pays the tax. Looks like a bill collector gave up after finding out the TP died.
    "Dude, you are correct" Rapid Robert

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      #3
      If I recall correctly 1099-C received so late after the death of the spouse can be ignored unless the domicile is in a community property state. If the estate was closed, no need to reopen the estate.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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        #4
        Tp was never married. Is single.

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          #5
          Is it a 1095 C or 1099 C?
          Everybody should pay his income tax with a smile. I tried it, but they wanted cash

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            #6
            Since 1095-C has to do with health insurance, pretty sure OP meant 1099-C for Cancellation of Debt based on addl info in the post. IRS requires it be reported on the 1041 by the estate. You said there was income from TP's work received after death, which also goes on there. The administrator/executor is responsible for the tax due. Insolvency of TP at death is not an issue. Estate insolvency would come into play here, which since there was income and real esrate does not appear to be valid. You said Mom sold the house and was the sole heir of the estate. Was she appointed administrator? I assume she received the proceeds of the sale of residence. Was her name on the house as owner or part owner? For these forms issued long after death and where estates have been settled, reporting is often forgiven by IRS. upon explanation. These were issued in the year of death before estate should have been settled. That's why attorneys routinely hold up sale of real estate for one year following death.

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              #7
              Was a 1099-c. No will. Small estate did not require probate. Mom was not on deed. Mom was only heir. RE sold by mom as heir at large(attorney's words on closing). Plan on doing a first and final 1041. Deceased TP will have a tax liability on final 1040. Mom knows she will have to pay this. It looks like I will have to put the 1099-c on the estate return. Thanks for response's.

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