Tax Law (Questions About Taxes)/1041 Deductions


HowardEA wrote at 2010-06-15 19:10:43
If no one lives in the property it becomes investment property when acquired by the estate on the date of death.  The costs of maintaining that property then become deductible as investment expenses.  They would not be administrative expenses as they would have been incurred whether the estate came into existence or not.  Administrative expenses are above the line expense for the calculation of the estate's AGI.  Thus expense such as utilities, insurance, repairs and property management would be deductible but subject to the 2% limitation.

The Tax DudeŽ wrote at 2010-07-02 22:49:18

I'm sorry but I have to disagree with you.  If the property in question was the personal residence of the decedent, the property does not convert to investment property upon his or her death.

Rich Luedee wrote at 2013-01-03 04:29:15
I believe you could add the period expenses like The utilities, insurance, repairs, property management, moving and storage fees to the basis of the personal residence to reduce any gain to zero.  There is a potential benefit to eliminate post death appreciation if any...

Rich Luedee, CPA

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Neil Johnson (The Tax DudeŽ)


CPA to answer Federal income tax related questions for individuals, small business owners, estates and trusts. I also specialize in divorce related tax and financial planning matters. I have extensive experience in nearly all areas of income taxation relating to businesses and individuals. I also regularly serve as a strategic consultant on a wide range of non-tax related business issues. In addition, I provide aggressive, experienced and skilled representation against IRS challenges at the audit and appeals. I have successfully represented clients against the IRS on issues regarding reasonable compensation, valuation discounts, time value of money, travel and entertainment expenses, innocent spouse relief and personal liability for unpaid business taxes. PLEASE...NO MORE QUESTIONS ABOUT PER DIEMS or LIFE ESTATES!!!! There are several Q&A items on these topics.


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