Mother's house was in a Revocable Trust that became Irrevocable on\ndeath. Currently about one year since DOD so post-mortem expenses\nrelated to house during the period the Trust is holding the house\nuntil sold have become significant.\n\nHouse receives a step-up of cost basis on death to FMV as of date of\ndeath. Real estate taxes are deductible on Form 1041 but there is no\nincome so the deduction is lost if claimed on Form 1041.\n\nIn addition to real estate taxes, there is insurance, utilities, yard\nmaintenance, advertising, etc that I am hoping to add to the FMV as of\nDOD to determine the cost basis when sold.\n\nAlthough these expenses are routinely added to cost basis for those\nflipping houses, my accountant has some concern as to whether this is\nlegitimate for a Trust.\n\nAccountant cites an election to capitalize real estate taxes and\ninterest but not sure this is applicable to Trust. There is no\ninterest since there is no loan. Obviously, my question is broader\nsince it includes adding all expenses to the cost basis. House is\nempty except when I am there as Trustee so there is no rental income.