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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?

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Level 1
last updated ‎December 07, 2019 11:04 AM

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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Level 14
last updated ‎December 07, 2019 11:04 AM

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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Level 14
last updated ‎December 07, 2019 11:04 AM

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

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Level 3
last updated ‎December 07, 2019 11:04 AM

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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Level 14
last updated ‎December 07, 2019 11:04 AM

Check one of your other 2 posts for the answer.


ex-AllStar