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I am a successor trustee of a relatively small estate, and I

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am trying to determine what...
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: 2 years ago.Category: Tax
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Answered in 34 minutes by:
9/10/2015
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,339
Experience: Taxes, Immigration, Labor Relations
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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.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

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

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Lev
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