Sale of home through an Estate

First part: My mother died in March of 2019. I am the sole beneficiary and was also made executor of her estate. She had a primary house that I sold in November. Does the step up cost basis include the expenses (i.e. county taxes, title insurance, escrow fees, etc) or are the expenses considered a "loss"?

Second part: Does any part of the Estate tax return flow through to my personal tax return? After I prepared the Estate tax return, Sch K-1, part 3 was blank.

Thanks!

Nicole

359

Expert Alumni

Apr 5, 2020 4:39:46 PM

Yes, you may include sales expenses incurred during the sale of the house. It would only flow through your return if you have a gain of the sale. If you have a loss or a wash, then that will not populate on your K1 because there would be nothing to report.

Level 15

Apr 5, 2020 5:39:57 PM

your property tax paid at closing is not part of your "Sales expense".

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Sale of home through an Estate