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March 7, 2025
Question

Loss on sale of home in a Trust

  • March 7, 2025
  • 1 reply
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My father passed in 2024 and his home was in a Trust.  In order to sell the home, we had about $50,000 in expenses/repairs.  We were told we could deduct some of this loss on our taxes.   Is that accurate and how would it work?  Thank you in advance.

1 reply

AmyC
Employee
March 7, 2025

Yes, when you report the sale on the estate (1041) return, it will pass through the k-1s. You will enter the: 

  • basis = value at date of death plus expenses to sell the house
  • sales price

Any gain or loss will pass through to the beneficiaries. See About Form 1041, U.S. Income Tax Return for Estates

I am sorry for your loss.

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