Deducting expenses from the sale of the decedent house

[wlee1120]

My father passed and his house was in a trust.  My siblings fixed the house which helped increase the sale price.  Can we deduct the expenses on fixing the house: material, contractor, etc?  Is there a section on Turbo tax Business to specify the fair market value of the house?  So far, from what I have done, it seems the capital gains will be from the sale price minus a few fees. 

Also, can the trust expense the cost of maintaining the house before it was sold?  Nobody lived there yet it needed to be upkept. 

The trust spent money in paying the funeral and medical expenses (my father had everything under the trust).  What can the trust deduct?

Thanks,

Bill

Thanks

Bill

[tagteam]

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@wlee1120 wrote:

The trust spent money in paying the funeral and medical expenses (my father had everything under the trust).  What can the trust deduct?

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Medical expenses paid before death would only be deductible on the decedent's final income tax return and, thereafter, only on Form 706 (the estate tax return).

See https://www.irs.gov/publications/p559 

Funeral expenses are not deductible on Form 1041.

See https://www.irs.gov/publications/p559#en_US_2019_publink100099524

You can add any improvements you made to the house to the basis of the house, which will have the effect of decreasing any realized gain on the sale.