Sale of Decedent's Residence

[bobclark15]

I am preparing form 1041 for 2019 for my father's estate. The estate sold his house in November. I understand that direct selling expenses can be deducted, but can I deduct the costs of getting the house ready to sell? Specifically, un-reimbursed expenses for a roofing repair, a water damage claim, and landscaping expenses.

[tagteam]

You can add the cost of improvements to the basis, but you cannot deduct costs of repairs (aka fix-up expenses) unless the property was business property at the time (e.g., available for rent).

[bobclark15]

Thanks for that. The basis would be established as of the date of the creation of the estate. I assume that the sales price (6 months later) and the basis would be pretty close to the same. 

[tagteam · Accepted solution]

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@bobclark15 wrote:

Thanks for that. The basis would be established as of the date of the creation of the estate. I assume that the sales price (6 months later) and the basis would be pretty close to the same. 

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Yes, as of the date of death of the decedent and it would be kind of tough to argue that there was much appreciation (or depreciation) in value within six months.