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.

--
Stu
http://DownToEarthLawyer.com


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Stuart O. Bronstein <spamtrap@lexregia.com> wrote:

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.

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.

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

Is there truly a choice about capitalizing versus expensing?

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

Thanks.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)