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Form 1041 Deductions

I've been asked if the cost to transfer property (real estate car title) are deductible administrative expenses on Form 1041. According to the IRS administrative expenses are expenses that would not have been incurred but for adminstration of the estate.

But that doesn't answer the question, in my mind. Those transfers wouldn't have occurred at that specific time if the person hadn't died, but they may have happened at some other time. So they're not solely because of the administration of the estate.

Additionally, those expensive could be capitalized and added to basis.

Which is it? I can't find the answer.

Thanks.

Reply to
Stuart O. Bronstein
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You're comparing hypothetical expenses that might have occurred had the decedent not died to actual business expenses of the estate. There's no legal reason to do that. There is an estate being administered. These are its business expenses. In point of fact, death occurred and there is an estate to administer. The expenses are legitimate.

Is there truly a choice about capitalizing versus expensing?

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Reply to
Adam H. Kerman

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