How do we file taxes as the executor of an estate that has a rental property?

My husband is the Executor of his fathers estate. My father in laws house still hasn't sold so leased it out through a real estate mgmt company. All of the rent collected has gone into my father in laws bank account and will be distributed between the heirs when the home has sold. The mgmt company sent a K1 in my husbands name. How should we file that? Should we file that at our own, then calculate how much it reduces our refund and recover that from the bank account? Correction, they sent him a 1099misc, not a K1. Thanks!

Public Comments

1. The RE Mgmt company needs to correct that 1099 slip to be in the name of your father's estate. Your father's estate needs to file an Estate Tax Return, form 1041, showing the rental income and expenses associated and issue Schedule K-1 to the beneficiaries, who will pay the tax on the income. The income can be distributed to the beneficiaries BEFORE the house sells. In fact, by law, I'm pretty sure it HAS to be.