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Am I allowed to deduct the cleaning and upgrading costs prior to selling a property for inheritance tax purposes in Pennsylvania

New Castle, PA |

A month before my sister passed in July,2012, she put me on the property as a joint tenant with right of survivorship. I sold the property for $52,000.00 in December, 2012 and spent $8000 just for cleaning and upgrading. I am tryiyng to file inheritance tax return and need to know if I can deduct $8000 and settlement costs as expenses. Also, I was the 100% beneficiary. Thanks

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Attorney answers 1

Posted

Costs of upkeep are only deductible on the PA inheritance tax return if the property was in the estate and not specifically devised under a will. Since you took title by survivorship these costs are not deductible.

This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature. Visit Steve Zelinger's website: http://www.stevenzelinger.com/

Steven M Zelinger

Steven M Zelinger

Posted

Also, because the house was made joint less than a year before she passed it will have to be included at full value on the return (as a transfer in contemplation of death) rather than 50% of the value as is normal on a joint asset that has been joint for more than a year.