Are the beneficiaries of an estate entitled to a capital loss deduction when the real estate is sold? Sale took place in the final year and there was no income. The house sold for much less than appraised value and we would like to take advantage of the loss.
Asked on 8/26/09, 12:14 pm
1 Answer from Attorneys
Norman Nadel
Norman Nadel, Esq.
If the house was held for rental purposes or investment purposes (and there is a strong argument that an unoccupied residence is held by an estate for investment purposes) then the loss on sale can be claimed as a deduction. To the extent that the loss is not utilized by the estate in its final federal income tax return, the unused deduction is distributed to beneficiaries.
Answered on 8/31/09, 12:36 pm
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