1041 Question

[JenMO]

When preparing the return of an estate, does the sale of the household goods go on the Sch D? Hshd goods were inventoried, but almost always sold at the inventory amount or less. Isn't this just a personal item that isn't a capital asset, or does it change to a capital asset in the hands of the fiduciary?

[Uncle Sam]

It belongs on Schedule D.

All property in the hands of the estate - should be included in the estate - and reported on Schedule D

No such thing as "personal asset" once a person deceases.

[Davc]

No such thing as "personal asset" once a person deceases.

Not always. The most common example of a "personal asset" of an estate or trust would be the decedent's residence if a beneficiary is using it as their personal residence.

[JenMO]

There was a home, but no one lived in it until it sold, so there were maintenance expenses of estate property. But, an auto was sold, a freezer and a few other household items. Nothing at a gain. Would these items be listed on the Sch D, also?

[JAinNC]

I would include on the Sch D - it was inventory, therefore money recd is gross income ----then no questions.

[Burke]

There was a home, but no one lived in it until it sold, so there were maintenance expenses of estate property. But, an auto was sold, a freezer and a few other household items. Nothing at a gain. Would these items be listed on the Sch D, also?

I suppose if you want to get down to the nitty-gritty, such items should be listed on the Sche D, but I have never done so, except for a car once. To begin with, it would be difficult to take a loss, since they are really considered sold at FMV (whatever you can get for them at an estate sale), and there is not usually any gain. So those items are a wash. Now if there were something really valuable that could possibly be considered sold at a gain or loss over its appraised value, then I would definitely report. The house is always reported, because it can generate a loss due to expenses of sale, or even realize a gain due to appreciation after death, and due to the fact that a 1099 is usually sent to the IRS, so it needs to match against their records. (They accept the HUD-1 in lieu of 1099 now as well.) Of course, all items sold or distributed need to be detailed in the estate accounting regardless of gain or loss, if one is required. Car and freezer might be listed as separate items, otherwise lump all else under "Household Goods."