TAXMAN Posted January 2, 2013 Report Share Posted January 2, 2013 TP deceased 2011 having a reverse mortgage. Estate filing (form 1041) Admin sold house in 2012 paying off mortgage. How would you handle the 12k of interest paid at closing? BTY the adminstrator had the right to sell and included the balance of cash received into the estate checking account. RE was not sold to any heirs or relatives and at a FMV. Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted January 2, 2013 Report Share Posted January 2, 2013 The interest was paid after date of death at the time of sale closing of the real estate. The admistrator should report the interest expense and the sale of real estate on the 1041. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted January 2, 2013 Report Share Posted January 2, 2013 Agree completely Quote Link to comment Share on other sites More sharing options...
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