Deductions & credits

Yes, the costs incurred by the Trust to take care of the property and get it ready for sale are deductible expenses for the trust.  They are protecting the trust assets until they could be sold.

In your case, the property was sold in a very short period of time. 

The IRS’ criteria for a fully deductible expense is any expense that is both incurred in connection with the administration of the estate or trust and incurred due to the property being held in such estate or trust.

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