Estate Taxes Selling expenses
I am working on a 1041 and I am confused on how to handle selling expenses of a house sold after death by the estate. It was sold shortly after death so there would have be no appreciation. According to the IRS, “Selling expenses (such as broker fees, survey fees, or transfer steps) are deductible if the sale is necessary in order to pay debts, expenses, administration or taxes, to preserve the estate, or to effect distribution.” The estate has sufficient assets to pay expenses, but would the selling expenses still be deductible since they affected distribution?
Also below is a sample settlement statement. Would the Sales price and Cost be $307,803.34 and the expenses I can deduct be the Brokers commission of $20,220? I can not find anything in the code or a pub that specifically says what I can do. Is there an IRC or pub that discusses this circumstance?
| Item | DR | CR | |
| Sales Price | 337,000.00 | ||
| Brokers Commissions | 20,200.00 | ||
| Estimate final bill to City | 400.00 | ||
| Estimated final bill to utilities | 875.00 | ||
| Pro rata taxes | 245.05 | ||
| Escrow fees | 895.05 | ||
| Title Charges Home owners policy | 1,184.56 | ||
| County Transfer Tax | 5,397.00 | ||
| Due to Seller | 307,803.34 | ||
| Total | 337,000.00 | 337,000.00 |
