Grandfather put his house in a trust in 2001 before he died. He died in 2009 and I received $16,000. in 2010 after the sale of his house. The estate filed a return and paid a gift tax penalty before any monies were distributed. They sent a Schedule K for my return with an amount in deductions. Do I have to claim any of this money as income?
My 2 brothers and I inherited a house in May 2009. We sold it in April 2010. We had it appraised when our uncle died and when it sold and the vlaue was the same. Do we need to report our money we received (closing lawyer sent us a 1099 S) and if so what type forms--Schedule D???