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1041 Estate Return - Mortgage Interest and Property Tax deductions

AJMorris
Level 2

Father passes away and leaves home and other nominal assets to beneficiaries.  Home is not occupied after death, rather put on the market and sold.

Are the property taxes and mortgage interest from date of death to date of sale deductible on the 1041?

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3 Comments 3
BobKamman
Level 15

Yes.  But what you really should be asking about are the insurance and utilities.

sjrcpa
Level 15

Mortgage interest = Investment interest here. Probably not much of a deduction.


Ex-AllStar
AJMorris
Level 2

Interest and Prop Taxes are 90% of the total costs.  I'll bite, what about utilities and insurance?  The trust has a loss on the transaction and a loss overall, both Fed and State.

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