John Smith wrote:

- quote -

I would address your question to the accountant who prepared
the 1041. There could be other factors here that we are not
aware of.

MTW

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"John Smith" <rshap2l[at]yahoo.com> wrote:

- quote -

I agree with you, and for what its worth, I can see no
justification for treating it as business property, as it
was personal property in the hands of the decedent, and
based on the facts as given, investment property in the
hands of the estate. Unless you began to rent it, this
never became business property.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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The estate sold my late mother's NYC coop, which was her
personal residence, and incurred about a 18K loss. It sold
at the appraised FMV, but there were 18K in selling
expenses. There are three beneficiaries. The accountant who
handled the 1041 treated it as business property and claimed
it as a net operating loss. While this gives us an ordinary
loss on the K-1, two of the beneficiaries are hopelessly
already in AMT because we live in high tax states, and the
NOL is an AMT preference item. It seems we will NEVER be
able to use the loss unless they change the AMT thresholds.
I don't understand why it couldn't be treated as investment
property by the estate and thus a capital loss.

Thanks for any replys

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