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I am having trouble interpreting even this and even more trouble trying to interpret the Cornell legal document. Regarding the quoted phrase above, is it referring to a scenario where the assets being sold are being sold by the decedent prior to his passing, but not inside a trust or even with no legal estate documents, or is it simply referring to someone else LIVING there, i.e., not selling the condo. Can someone please help me? Perhaps if I provide some examples, your answers will help me to understand the general principle at work here. The majority of the expenses incurred were costs that the decedent would never have spent if he was still alive and living there - indeed, he didn't, but costs that a selling agent would have recommended be spent to (cost-effectively) get top dollar, repairing broken things and making the home presentable to potential buyers. Alternatively, the condo may have sold with a credit for repairs which, I would think, would impact the 1041 return in a similar, although probably more costly, way. In general, rather than paying beneficiaries (and spouses) some hourly rate, they worked for weeks getting the place in selling condition, and accepted reimbursement from the estate for travel, a bit of hotels, and meals. The central AC was found non-working, first repaired, and then replaced. Many simpler repairs were done during that three weeks. Then, there were commissions and also clean up costs paid for NON-TRUST (personal possessions, I guess) non-trust collectibles to prepare them for selling and to sell them, all at a loss compared to the valuations that were also paid for. [As I understand it, those losses due to selling personal possessions are not deductible at all]. Then there were payments for final medical bills and funeral expenses of the deceased; also utilities during the period when the condo was not yet sold. I am guessing that professional fees associated with the estate tax returns and attorneys fees are deductible. Thank you!
