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Inherited Home & Form 1041

KMACK
Level 3

My client passed away with rental property.  Three months later the property was sold by the trustee of her estate.  The basis and sale price of the property were the same, but there were selling expenses of about $40,000.  Do the selling expenses create a capital loss on the sale and if so are those losses passed on to the beneficiary on K-1 or do they stay with the estate on 1041?

KMAC

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IRonMaN
Level 15

They stay until the final 1041 is prepared and then are passed on to the beneficiaries.

ACME Taxes, Tattoos, Tires and Tasmanian Devils - one free devil with every return.

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4 Replies 4
IRonMaN
Level 15

They stay until the final 1041 is prepared and then are passed on to the beneficiaries.

ACME Taxes, Tattoos, Tires and Tasmanian Devils - one free devil with every return.

View solution in original post

KMACK
Level 3

That makes sense.  Thank you for the quick reply.

Agreed about the mask!

KMAC

IRonMaN
Level 15

You betcha!

ACME Taxes, Tattoos, Tires and Tasmanian Devils - one free devil with every return.
qbteachmt
Level 15

You already asked this previously, here:

https://proconnect.intuit.com/community/proseries-discussions/discussion/re-client-dies-with-rental-...

 

Please do not keep starting the same issue on new topics. If you need to follow up, you already had this subject running. Keep updating that one. Thanks.

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