Mother dies. Estate sells mother's home at a loss. Estate has no other items of gain or loss. Loss appears on final (and only) Form 1041. Given the character of the property is the loss deductible on 1040 by the beneficiaries? Thanks.
Reply to this post | Go to top
Are you sure there is a tax loss on the sale? The tax basis is the fair-market-value as of the date of the death, not mother's basis before death.
The basis of the house is at the fmv at dod. Did you calculate properly?
For a loss, the house would be sold below the fmv at dod.
Printer-friendly format
= Quickfinder Team Member
