Max W Posted May 12, 2021 Report Share Posted May 12, 2021 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.? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted May 12, 2021 Report Share Posted May 12, 2021 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. 3 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 12, 2021 Report Share Posted May 12, 2021 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 3 1 Quote Link to comment Share on other sites More sharing options...
Max W Posted May 12, 2021 Author Report Share Posted May 12, 2021 Thanks. I was hoping you would both say that. 1 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 12, 2021 Report Share Posted May 12, 2021 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. 1 Quote Link to comment Share on other sites More sharing options...
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