Are these debts tax deductable?
Dear Sir, When my step mother passed we inherited a house that my father built and left to us, yet the step did a reverse mortgage on it. My father built it and it had been paid for for over 30 years. Moral issue was, do myself and my sister let them foreclose or for my father, sell the house.We are in KY, house is in IL. There was an estate atty, however he would not fight to have credit card lien (placed after step mothers death) removed off the house. Yet there was $38,000 in household funds. $10,000 credit card lien, which kept us from selling the house to stop foreclosure. My sister and I had to hire an atty to take the estate/estate atty to court. Because the debt was made after my fathers death. We had to do some flooring improvements and painting, to make the house sellable. As well as hire a company to empty the house. (Let me say that a niece of the step mother had already emptied the house of the valuables so there was no money to be made from emptying what was left) My sister and I incurred costs of Hotels, food, attorney fees, Mileage, flooring materials & labor, property taxes, lawn maintenance, and utilities for the months that we had the house sold, with a buyer, yet unable for them to take w/lien. Thank you
1 Answer from Attorneys
Re: Are these debts tax deductable?
Yes they should be able to deduct those costs from your final sales price. Depends on your basis when the property was received.
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