1041 - Loss on sale of home

[Max W]

Decedents home was sold and the stepped up basis was equal to the sale price.  The closing cost produced a loss of $35,000.

What happens to this loss.?

[jklcpa]

Capital loss as long as it was an arms length sale, to an unrelated party, and not used personally or intended for personal use before the sale.

[BulldogTom]

55 minutes ago, Max W said:

Decedents home was sold and the stepped up basis was equal to the sale price.  The closing cost produced a loss of $35,000.

What happens to this loss.?

Passed to the bene's on the K-1.  Very common to see on a 1041.

Tom
Modesto, CA

[Max W]

Thanks.  I was hoping you would both say that.

[JohnH]

I sure was glad to see this discussion. Just ran into the exact same situation on my final return before the 17th and was planning to come here to ask about it.  The only difference is that mine was a K-1 from a trust. Glad I procrastinated.
 

Thanks for the excellent replies to Max, and thanks to Max for asking such a fine question.