in [Event] USAA + TurboTax | Ask the Experts About Your Taxes
The executor sold my father's house last year as part of settling probate and I'm filling out the estate's taxes using TurboTax Business. I have a 1099-S and understand the basic deductions allowed as selling expenses. But I'm not sure about some of the details. My parents were hoarders. After my father's death and before the house could be sold, we had to rent multiple dumpsters to remove trash and debris, pack up and remove hoarded items, clear accumulated brush/dead trees/weeds blocking access to driveway. This took quite some time, during which we had to maintain home insurance and utilities - because we planned to sell the home, and houses degrade rapidly without proper heat/cooling - and pay people to remove junk from outbuildings.
Are some of these expenses deductible as selling expenses? One one hand, my father would have needed home insurance and heat if he had been living there, but no one was living there after his death and we were working as fast as possible to get the house ready to sell. Are dumpsters, debris clearing, etc. considered "staging" expenses? I just want to be sure I'm deducting everything that is permissible and nothing that isn't.
Thanks in advance for any advice.
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You can deduct the cost of the dumpsters, cleaning, and other expenses incurred to make the property ready for sale but not the cost of insurance and utilities.
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