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Determining 1041 Estate Expenses Allowed

Forum|Forum|3 years ago
January 22, 2023
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I am really confused with what deductions are allowed to be taken on a Form 1041 Estate Tax Return, where they go on the 1041 and how they should be reported on the K-1 form for the beneficiaries? The Estate is in Wisconsin (2 beneficiaries in Illinois and 1 in Wisconsin).
There is no income only expenses for the 1041.

The expenses are:

Expenses Prior to Sale:

Utilities

Snow removal

Final cost of healthcare

Bank Fees

Remaining funeral cost

Repairs & Postage reimbursed to

beneficiary

Attorney Fees

After Close:

Final Attorney Fee

Closing costs:

Wisconsin Transfer Tax to Register of

Deeds

Final Water Bill to Beloit Water Utility

Home Warranty to Universal Home l

Protection

Real Estate Commission-Listing Agent

Real Estate Commission-Selling Agent

Title-Gap Endorsement to Land Title &

Closing Service LLC

Title-Owner Title Insurance to Land

Title & Closing Service LLC

Title-Special Assessment Letter to

Land Title & Closing Service LLC

County Taxes

Title-Adjustment for Owner's Premuim

Not A Product Question

Best answer by Anonymous_

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A

Anonymous_

Employee

C

CDAAuthor

Thanks for the quick response. I thought because the home of the deceased was sold and/or 2 of the beneficiaries were from out-of-state that I had to file a 1041 even though there was no income. Home sale did not result in a gain or lose. Home was vacant from time of death to time of sale.

I will look at the information in link you included and also check out Wisconsin.

If unable to figure out for sure about deductions, I’ll contact one of the tax experts.

Thanks again.