topic 1041 Estate Deprecation in Deductions & credits

1041 Estate Deprecation

Stevehofwa — Mon, 23 Feb 2026 10:46:53 GMT

If you have rental property in the estate, does the net rental income(not considering depreciation) and depreciation pass through to the beneficiary, or can the estate use the depreciation to offset estate income(not just rental income,assuming active participation) prior to distribution. A beneficiary, due to income level, might not be able to use the depreciation to reduce regular income, but just be forced to carry a suspended loss until disposition.

Re: 1041 Estate Deprecation

Anonymous_ — Sun, 22 Dec 2024 21:15:37 GMT

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 19:26:56 GMT

let’s say due to depreciation, I can show a rental loss. Can I allocate income to the estate, which I can then use the loss to offset(let’s say resulting in zero estate taxable income), reducing the taxable income passed on to the beneficiaries?

Re: 1041 Estate Deprecation

Anonymous_ — Sun, 22 Dec 2024 21:16:05 GMT

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 19:36:58 GMT

So if I allocate all rental income to the estate, then I can use any loss due to depreciation to offset other income, like dividends, etc(I guess up to 25000 if the estate is small)?

Re: 1041 Estate Deprecation

Anonymous_ — Sun, 22 Dec 2024 21:16:27 GMT

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 19:54:16 GMT

Another question, just to clarify, if the estate fiscal year ends 10/31, then the due date for the return is 2/15 of the next year, or 7/31 with a filed extension.

Re: 1041 Estate Deprecation

Anonymous_ — Sun, 22 Dec 2024 21:16:48 GMT

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 20:33:45 GMT

Not to be a pest here, I’m amending a return from 2019. Death was 11/08/2018, so fiscal year was 10/31/2018 to 10/31/2019, due date of return 2/15/2020, so amendment can be as a late as 2/15/2023.

Re: 1041 Estate Deprecation

Anonymous_ — Sun, 22 Dec 2024 21:17:06 GMT

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 22:20:13 GMT

Filed the original return timely. Noticed I had not included some attorney fees, so thought I would amend to get the deduction. But now it’s not clear to me how the depreciation worked, exactly. The estate certainly didn’t owe taxes as the income was passed on to the beneficiaries. Unfortunately used hrblock business, which is a piece of junk.

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 22:25:53 GMT

I guess I’ve got until 2/15(filed an extension so later than that if necessary) to figure it out. Generate k-1, beneficiary files amendment by 4/15(or later if extended).

Re: 1041 Estate Deprecation

Stevehofwa — Tue, 17 Jan 2023 23:42:34 GMT

Right, I meant 11/08, so a "short" year.