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Can executor deduct on line 15, form 1041, expenses of sale of decedent’s rental real estate or do they have to list the expenses on scheduleE to reduce that income?

tmarmbrust
Level 1

Items include appraisal, auctioneer commission, closing agent fee, attorney fee, abstract continuation, transfer tax, survey cost, recording fees, and real estate taxes paid and prorated to date of sale.  

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sjrcpa
Level 15

Neither. Expenses of sale  are used to reduce the gain, or increase the loss, reported on Form 4797. Real estate taxes are a Schedule E deduction.


ex-AllStar

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sjrcpa
Level 15

Neither. Expenses of sale  are used to reduce the gain, or increase the loss, reported on Form 4797. Real estate taxes are a Schedule E deduction.


ex-AllStar

View solution in original post

KMACK
Level 3

If the basis of the property and the sale price were basically the same (since the rental property was sold soon after the owner's death by the estate), is the capital loss generated by including the expenses of sale deductible?  And if so, is the loss passed on to the beneficiary or does it stay in the estate?

KMAC

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sjrcpa
Level 15

Check one of your other 2 posts for the answer.


ex-AllStar