1041 expenses

[TAX4US]

Form 1041 being filed. Question comes up. Fiduciary had to pay electric bills of real estate, and a gas bill to protect real estate from freezing. Also had to pay house insurance. The real estate will be sold in another tax year. Have a large estate tax to pay now due to very low distributions that were made. Can I use these on this years form 1041 or not? Your thought.

[ATSMAN]

I believe expenses incurred by the trust to pay for maintenance and conservation of the property in the trust is deductible subject to usual limitations on form 1041.

Expenses that are paid or incurred in the administration of an estate or trust and that would not have been incurred if the property were not held in such an estate or trust are deductible under Sec. 67(e)(1)

[TAXNJ]

See TTB 21-13 Deductions

[Gretel]

I believe expenses incurred by the trust to pay for maintenance and conservation of the property in the trust is deductible subject to usual limitations on form 1041.

Expenses that are paid or incurred in the administration of an estate or trust and that would not have been incurred if the property were not held in such an estate or trust are deductible under Sec. 67(e)(1)

Is this a personal residence or some other real estate? If it is a personal residence and a relative or beneficiary live in in there would be no deduction for maintenance.

[ATSMAN]

Is this a personal residence or some other real estate? If it is a personal residence and a relative or beneficiary live in in there would be no deduction for maintenance.

Correct. If the residence is being used by the beneficiary as a personal residence. But if it is locked up pending sale or distribution it may qualify.