Can an estate deduct expenses for maintaining rental property?

Ordinary and necessary expenses may be deductible by the taxpayer that owns and operates the property. If inherited property produces rent, interest, dividends, royalties, or business income, the income is generally taxable to the estate, trust, or beneficiary that owns it at the time. The reporting result is sensitive to beneficiary status, basis, timing, ownership, and whether the payment is principal or income. For tax reporting purposes, federal and state systems are separate, so the executor or beneficiary should check the current rules that apply in MD and any other state connected to the estate.