CapeCod54
Feb 2, 2010, 10:54 AM
My mom passed away last year. I am the executor to the estate and have continued paying the mortgage while we fix it to sell. Can I claim the interest on my 2009 taxes?
AtlantaTaxExpert
Feb 26, 2010, 03:29 PM
Several issues:
1) Does the estate have income? If so, the ESTATE must claim the interest on the fiduciary return (Form 1041) that the estate must file annually. The ficuciary return is required if there is gross income of $600 or more.
2) Are you paying the mortgage from your OWN pocket or from assets/income from the estate?
3) Are you the SOLE beneficiary of the estate?
If the answer to #2 or #2 is no, then you CANNOT claim the interest on your return. You CAN add the interest paid to the basis of the house when you alculate the capital gains or loss when the house is sold. That sale should be reported on the fiduciary return.