1041- Expenses for Decedent's Residence

Forum|Forum|5 years ago
May 5, 2021
2 replies
18 views

Can mortgage interest, property taxes be expensed if paid by the estate?

And any maintenance & repair costs associated with keeping the home until sold...add those to the basis when sold or expense? If expense, under Other Deductions line 15a?

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sjrcpa

Level 15

Property taxes Yes, subject to the $10K cap on taxes.

Mortgage interest - maybe. How is the house being used since death?

Other deductions -No.

The more I know the more I don’t know.

E

ea_rva aka acctgtaxmattersAuthor

Level 5

DOD was Dec 2019, sold in July 2020. House was vacant until sold.

qbteachmt

Level 15

"House was vacant until sold."

Okay, trying to combine Both Topics:

The house is inherited for FMV on the date of death. You state it was "maintenance and repairs to keep it" but it seems that was prep to sell it, since no one was living in it. And, if it was listed at a reasonable price and the same listing finally got it sold, that sale sort of proves FMV. The assessor office is never a FMV listing; it's a Tax Value listing.

Either get an appraisal for the date of the death, or I would ride on the fact that it sold as timely as possible for a FMV that applied, given there are not unusual changes in conditions for the property (such as, someone realized a shopping center was going next door or found gold on the property or something) and there is no loss from FMV. Just usual closing costs, as Lisa pointed out.

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qbteachmt

Level 15

You started this as a duplicate, here:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/1041-sale-of-home-is-loss-allowed/00/162296

Now you have it in two places and the peers are trying to help in two places.

Please, don't keep updating Two Topics with the same info. You are making the volunteers do twice the work, for one thing. There is no need to keep starting new topics on the same issue. Just keep updating the first discussion you have, to get cohesive assistance from peer users here. Thanks.

Don't yell at us; we're volunteers