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fpc
Level 3

Where to enter inherited house expenses prior to sale

The inherited house was a part of an estate.  While waiting for the house to be sold, ongoing maintenance expenses were incurred including:

insurance,

water,

electricity,

gas,

sewer,

lawn maintenance, and

tree trimming.

 

Could those expenses be included under "Expenses, Taxes, and Fees" - "Other Deductions" ?

 

 

1 Best answer

Accepted Solutions
tagteam
Level 15

Where to enter inherited house expenses prior to sale

Under Section 212, the estate can deduct expenses for the management, conservation, or maintenance of (estate) property held for the production of income (which includes selling at a gain).

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4 Replies
tagteam
Level 15

Where to enter inherited house expenses prior to sale

Under Section 212, the estate can deduct expenses for the management, conservation, or maintenance of (estate) property held for the production of income (which includes selling at a gain).

View solution in original post

fpc
Level 3

Where to enter inherited house expenses prior to sale

Great thanks !

 

The house and a separate lot were both being held for sale each with their cost basis stepped up to their selling price.  The process took three months or so.

 

I didn't think it would be proper to charge things like roof replacement, wall paper removal, light fixture replacements, and painting to be deducted since those things could have been done previously to the owner's passing and those things resulted in the home being easier to sell.  Do you think that makes sense?

 

Thank you again for the help with this!

Frank 

tagteam
Level 15

Where to enter inherited house expenses prior to sale

Yes, that makes perfect sense and those expenses would not be deductible since they are basically repairs that were incurred in an effort to make the house ready for sale.

fpc
Level 3

Where to enter inherited house expenses prior to sale

Thank you for confirmation and explanation!

 

 

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