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eclauderdale
Returning Member

how to enter demolition of homestead on form 8949 for Trust form 1041

Hello,

We sold a family homestead (had dilapidated buildings and tires dumped) that is now vacant land for the Living Trust after our father died.

We received a 1099 S Substitute form

We have Closing expenses and Demolition of structures and Remediation of Environmental Hazards...

We believe these are improvements to the cost basis of the property, but cannot see a way to add them to the form 8949

The step by step does not work for this... the sale of a home option is close... but this is a family homestead that was inherited and has had no one living on it since before our father died

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1 Reply
M-MTax
Level 13

how to enter demolition of homestead on form 8949 for Trust form 1041

Not sure if this is the answer you're looking for but you add all demolition costs to the basis of the land.

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