BobKamman
Level 15

All of the items on the settlement statement would be selling costs on Schedule D except for the utility bills (actual amounts once determined) and pro-rated real estate taxes.  Those would be deducted on the 1041 itself.  This assumes that the sale was necessary "to effect distribution."  If there is just one beneficiary, conceivably IRS could argue that the property could be distributed in kind, but I have never heard of them taking time to make that argument.