Mortgage interest deduction on form 1041

Forum|Forum|1 year ago
March 12, 2025
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Father passed 3/1/24. His residence was sold 6/26/24. Are the interest payments made during the period 3/2/24 to 6/26/24 deductible on 1041. Interest payment made during the period 1/1 to 2/29/24 are deducted on schedule A 1040.

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DavidD66

Probably not. Mortgage interest is deductible if is is Qualified residence interest. According to the Instructions for Form 1041 U.S. Income Tax Return for Estates and Trusts, Qualified Residence Interest is:

Interest paid or incurred by an estate or trust on indebtedness secured by a qualified residence of a beneficiary of an estate or trust is treated as qualified residence interest if the residence would be a qualified residence (that is, the principal residence or the secondary residence selected by the beneficiary) if owned by the beneficiary. The beneficiary must have a present interest in the estate or trust or an interest in the residuary of the estate or trust. See Pub. 936, Home Mortgage Interest Deduction, for an explanation of the general rules for deducting home mortgage interest.

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