1041 Sale of Home - Is Loss Allowed

[ea_rva aka acctgtaxmatters]

 I have a $31,000 loss on sale of residence. Property was immediately put on the market and sold with a year of decedent's death, no beneficiaries living in the home. Can the loss be taken?

[IRonMaN]

Yes - as long as it was qualified appraisal that created the loss.

[ea_rva aka acctgtaxmatters]

There is not an appraisal but rather based on county assessment posted on county website. This is the value my client used for initial inventory at DOD.

[Just-Lisa-Now- · Accepted solution]

If sold right after death, FMV and sales price are the same and you usually end up with a loss for the closing costs/commissions paid out.

[IRonMaN]

I don't know about where you are at, but county values don't mean diddly around here.  Lisa is correct that the normal routine after holding the property for a reasonably short time is to show the basis as the selling price and add closing costs to the basis.

[ea_rva aka acctgtaxmatters]

Mortgage interest, taxes can be expensed if paid by the estate correct? And any maintenance & repair costs associated with keeping the home until sold...add those to the basis or expense? If expense, under Other Deductions line 15a?

[ea_rva aka acctgtaxmatters]

Thanks all!

[qbteachmt]

You started this as a duplicate, here:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/1041-expenses-for-deced...

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.