That is correct. You do not get a deduction for purchasing a new home. Just the expenses of the estate.
The gain on the sale of the house is what is important here and what you need to figure out. How did the trust receive the house? Was it an inherited asset or transferred by a living person. How did you determine the basis that you used for the sale?
@kathy_z
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
