Selling Expenses on 1041's 8949

[edrakin]

Estate sold real estate for $200,000 and netted $182,000 after selling expenses. The 1099 received from the settlement company just references gross proceeds of $200,000. Basis is $182,000 because that is what was reported on the attorney's inheritance tax return as the date of death value, based on net proceeds.

Would I enter an adjustment (E?) on the 8949 of this 1041 to reflect the selling expenses? Or would I itemize each one as a deduction? Thanks! 

[dkh]

Your information is confusing

Sold real estate - netted $182,000   - meaning profit is $182,000

sold real estate $200,000 with basis $182,000  - meaning profit is $18,000

[edrakin]

Thanks for your reply. 

I am supposed to report the sales price as the proceeds on Form 8949(d). The sales price was $200,000. There were closing costs of $18,000, so the check the executor received was for $182,000. Basis is $182,000. 

I'm asking whether I can put in an $18,000 adjustment for the closing costs on 8949(g) to bring the gain to $0. Or if I can, alternatively, report $18,000 of deductions for closing costs more generally. Or is the estate stuck reporting $18,000 of gain because the expenses of sale cannot be used at all on the 1041? 

[edrakin]

I went back to the Form 8949 instructions and found the following language on the second read, which seems to answer the question. I make an adjustment for the closing costs in 8949(g) to eliminate the gain. 

"You received a Form 1099-B or 1099-S (or substitute statement). If you received a Form 1099-B or 1099-S (or substitute statement) for a transaction, enter in column (d) the proceeds shown on the form or statement you received. If there are any selling expenses or option premiums that aren't reflected on the form or statement you received (by an adjustment to either the proceeds or basis shown), enter “E” in column (f) and the necessary adjustment in column (g)."

[Accountant-Man]

Did you include the step-up in basis for the real estate?

Never mind. I see the confusion.