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  1. #1
    onthepipe is offline Junior Member
    Join Date
    Jul 2010
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    Tax questions on deceased parent and estate

    What is the name of your state (only U.S. law)? TX

    My Dad died in early June 2010 and I am trying to figure out the tax liability for both him and the estate. Below are the questions I have if anyone can assist-

    1. Can I take the entire property tax deduction paid in January 2011 for tax year 2010 on his income taxes for 2010 or do I have to split the amount between the deceased return (2010) and the estate return (2010)? This is assuming I itemize and not take the standard deduction of course.

    2. Same thing for rental property income and write-off's - do I take only the amount of deductions and income up until his time of death - and the rest is claimed on the estate taxes?

    3. If the estate has no income, can it write off deductions like trash removal from property, court costs, etc?

    3. Is the entire amount of 1099-R's and income up to the time of death submitted for his income tax or can it be split between his taxes and the estate taxes for 2010?

    4. Considering that the entire estate is worth less that $160K, will there be any taxes owed by the estate on the properties that were sold (primary residence and one rental home). The properties are part of the will that designates the beneficiaries inherit the property.

    Thanks for any assistance.
  2. #2
    tranquility is offline Senior Member
    Join Date
    Mar 2006
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    18,492
    1. Can I take the entire property tax deduction paid in January 2011 for tax year 2010 on his income taxes for 2010 or do I have to split the amount between the deceased return (2010) and the estate return (2010)? This is assuming I itemize and not take the standard deduction of course.
    The deduction is for 2011. Only the person (estate) who paid the money can take the deduction.

    2. Same thing for rental property income and write-off's - do I take only the amount of deductions and income up until his time of death - and the rest is claimed on the estate taxes?
    We will sometimes wait until the end of the month as it can be more effort to close off the books in mid-month, but there should be two returns here.

    3. If the estate has no income, can it write off deductions like trash removal from property, court costs, etc?
    Write off from what?

    3. Is the entire amount of 1099-R's and income up to the time of death submitted for his income tax or can it be split between his taxes and the estate taxes for 2010?
    Since retirement distributions should have been only received during his life, it all goes on his return. The payors of the retirement accounts were notified, correct? If RMD, it is income in respect of the decedent.
    4. Considering that the entire estate is worth less that $160K, will there be any taxes owed by the estate on the properties that were sold (primary residence and one rental home). The properties are part of the will that designates the beneficiaries inherit the property.
    No, the basis was stepped up. As long as the sale is near the death, there would not be a capital gain.

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