@taxdean wrote:
The house sold for net proceeds of 602k after being valued at 665k, but the latter was not net of realtor commissions. Is the loss the full 63k (in addition to other estate settlement expenses addressed above) or should both have some realtor commisions?
The loss is the difference between the basis (the fair market value on the date of death) and the sales price (less selling expenses). Since the latter figure is less than the basis, the trust has a loss that can be passed through to the beneficiaries when the trust files its final return.
Note that you really should secure a date of death appraisal by a certified appraiser. The IRS is not obligated to accept anything less than that to show the fair market value of property as of a certain date.
