Are my documentary stamp taxes, which are part of an estate, deductible on my 1040, 1041, or estate tax return?

by Susan D. Jarvis, CPA | Apr 26, 2018

I paid $1,500 in documentary stamp taxes in connection with the sale of my deceased mom's house which was held in an estate. I am the fiduciary. I understand that some fees in connection with the estate are deductible on Schedule A of my own 1040. Some are subject to the 2 percent, and some are not. Must I take the doc stamp taxes on Form 1041 to reduce capital gain on the house sale, or can I deduct the doc stamp taxes on my 1040 Schedule A?

The transfer taxes (“tax stamp”) you are referring to must be deducted as a cost of the sale of the real property on the estate return. Otherwise, those transfer taxes are never deductible on your personal tax return. They are only ever deducted as a cost of the sale of real estate.

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Answered by:  Susan D. Jarvis, CPA, is a sole practitioner in Nazareth, Pa.

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