Trust expenses deduction

Forum|Forum|3 years ago
April 16, 2023
1 reply
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I need help, I'm using the trust business software and nowhere I see where I can enter all the expenses paid by the trust to fix up the house and paid utilities and previous taxes paid.

That money came from the trustee so they were compensated once the property sold. But under the deductions there is no category to enter those amounts. under other deduction it talks about

elections, amortization of bond premiums, early withdrawal penalty
Depreciation and amortization allocable to the estate or trust that was not deducted elsewhere
- Repayments of certain amounts included in your income in an earlier year if the repayment was more than $3,000.

do I take from this that it goes here?

TurboTax Business Windows

Best answer by Anonymous_

Yes, the fair market value on the date of death of the grantor would be the basis and, if the same as your sales price, you would have no gain (or perhaps a loss after selling expenses).

Anonymous_

Employee

Is the house being held for rental use?

Generally, fix-up expenses and utilities are not deductible unless the property is being held for business use or the production of income. Real estate taxes would be deductible, however.

aceskullAuthor

Hi. no the home comes to the trust after death, revocable trust, now irrevocable.

Everything I read online before putting the money in the house was misleading then. The house was not used for personal use but needed work to even make it sellable. The house was appraised for the same value it sold for so should I enter fair market value of the house to that amount to avoid huge amount of capital gain taxes?

Anonymous_Answer

Employee

Yes, the fair market value on the date of death of the grantor would be the basis and, if the same as your sales price, you would have no gain (or perhaps a loss after selling expenses).