Deceased estate loss?

MiniEggs

Can an deceased estate file a tax return showing a loss?

i am the executor for my late fathers estate that includes a couple of rental properties 

As the tenants move out soon the outgoings will be more than the income 

The bills will still be paid as my mum is the only beneficiary and they are coming out of  her account 

Although the solicitor told me the rental income /bills were part if the estate as dad is the outright property owner

It feels like at some point the bills should go on mums tax return even though dad still owns the property as dad ultimately will have no income and cannot hold capital for obvious reasons so can’t be paying the bills

Thanks

buffalito

The rental income is still technically part of your Father's estate and you need to fill in a tax return for the administration period which is between the date of death and when grant of probate is issued (if he wrote a will). Any rental income received during this period will need to go on this return. This is what I did for my late mother's estate as she had two rental properties. When/if probate is issued if your mother owns the properties going forward she will need to start filing property income returns to HMRC.

MiniEggs

Thanks for your reply 

I am well past obtaining probate and am still filing returns for Dads estate

The properties ate not in mums name and I don’t want to go through the whole transfer process before selling them as that could delay things for a year with the land registry taking so long to do anything 

msb1234

If you have obtained probate, you can sell the properties now. You dont have to transfer ownership to anyone.

MiniEggs

I know but there is still council tax and other bills to pay and no income into the estate and it obviously takes months to sell a house

Marcon

MiniEggs said:

I know but there is still council tax and other bills to pay and no income into the estate and it obviously takes months to sell a house

So might be wise to start the sale process as soon as possible.

nom_de_plume

My understanding, from inheriting a rental property some years ago, is that the beneficiary receives all rental income from date of death. Presumably the same applies to paying any expenses relating to such a  property. In my case I was specifically left the property so there may be differences depending on the wording of the Will and how the property was bequeathed but quite possibly your mother should be treating it as her own from the date of death.