Carrying costs of inherited house

[DonPriebe]

Taxpayer's parent died, leaving house to taxpayer in will. House put on market and sat vacant for eleven months in a declining real estate market before sale. Since "loss" due to market conditions in unquantified, (no formal appraisal or estate tax return), going to assume that FMV at date of death was equal to sales price.

Basis of house should be FMV at time of death plus sales expenses (e.g. commission, attorney's fees, closing costs, etc.). What about carrying costs during those eleven months (e.g. property taxes, maintenance, insurance, etc?) Should they also be added to basis?

[taxmom34]

property real estate tax would go on schedule A wouldn't it.

[Burke]

Are you doing an estate income tax return (fiduciary) Form 1041? There is a place for these on that form.

[DonPriebe]

property real estate tax would go on schedule A wouldn't it.

My client would not benefit from itemizing. I was looking for some (legal) way to take advantage of the property taxes.

Are you doing an estate income tax return (fiduciary) Form 1041? There is a place for these on that form.

My client is the beneficiary. The 1041 was prepared by the attorney for the executor. The house passed to the beneficiary through the will, so it was not "owned" by the estate during those eleven months. Never the less, some of the carrying expenses were actually paid by the estate and appear on the 1041. Others (primarily the property taxes) were paid from the proceeds of the sale as part of the closing costs.