1041 Decedant return

[cpabsd]

I only prepare one of these every couple of years so please help me.

I am preparing the decendant estate return. Interest was earned from time of death until end of first tax year. Also, there is some rental income and expenses. I understand this part. My question is realting to real estate taxes paid by the estate while the house is trying to be sold. This is not rental. It is sitting there vacant. It used to me the mother's personal residence. There are real estate taxes and utilities. Will these be added to basis when the property is finally sold? I just don't want to miss any deductions on this return.

Also, the estate is going to pay the tax. Is there a need to send K-1's for this tax return as there were no distributions?

Thanks for the guidance.

[ed_accountant]

Page 1 of form 1041, line 11, taxes, you can deduct property taxes.

No K-1 would be issued since there have been no distributions. I am assuming this is not the final return. You would issue a K-1 on the final return .