ATX Form 1041 Sch D

[David]

I am preparing an estate tax return 1041 using ATX software. The estate sold the decedent's house at a loss. When inputting this information into Sch D, it is allowing the loss to flow to the front of Form 1041- of course at the $3K limitation with the rest of the loss being carried forward.

There is no option to show that the house is a personal sale and to not deduct the loss. The only input type applicable is non-business gain/loss or blank.

What do I need to do for the program to treat this correctly?

Thanks,

David

[zeke]

"There is no option to show that the house is a personal sale "

Correct. The estate, not the decedent now owns the house. The loss IS deductable.

zeke

[David]

"There is no option to show that the house is a personal sale "

Correct. The estate, not the decedent now owns the house. The loss IS deductable.

zeke

Thanks, Zeke. That makes sense.

I have a question about deductilble expenses on Form 1041. No estate tax return is required since the assets are valued well below the $2 million level.

The estate paid for lawn care to maintain the decedent's house before the house was sold. Are these deductilbe expenses? What about homeowner's insurance on this same house that was paid out of the estate?

Thanks,

David

[zeke]

no on lawn care and no on ins. Planning date of fiscal year and payment of administrator fees & legal fees can often help minimize estate income tax.

zeke