We are filing form 1041 for an irrevocable trust the first year after the grantor passed away. We took election 645 and are filing on a fiscal year ending April 2019. We are using trust/estate income to pay all debts and conserve property before sale. One debt included an automobile loan, which we paid in full.
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Payment of a loan is generally not a deductible expense. Offhand, I can't think of any instance where that would be an allowable deduction.
The payment of the auto loan is simply fulfilling the purchase price agreement. You still have the asset, which presumable will be sold with the other estate/trust assets.
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