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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I am a successor trustee of a relatively small estate, and I

Customer Question

I am a successor trustee of a relatively small estate, and I am trying to determine what costs can be deducted on IRS form 1041...specifically, costs associated with remedial work on a home subsequently sold, plus real estate transaction costs
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

As long as the property is not used for personal purposes - these costs are deducted.
However - we need to separate repair and improvement expenses.

Repairs are deducted in the year they are paid, but improvements are added to the basis and will reduce taxable gain when the property is sold.
Regarding real estate transaction costs.. these are usually classified as selling expenses and as such are added to the basis.
However - we need to be clear which transactions costs you actually mean.

If you could list these costs - I will help to classify each.

Expert:  Lev replied 1 year ago.

Let me know if you need any help with reporting that sale transaction.