An estate is a legal entity that originates upon the death of an individual. An estate is set up to administer all legal affairs of the decedent to be settled and to distribute the assets owned by the decedent. However, they can continue for several years if the correct distribution of the decedent's wealth is in question

There are a number of significant income tax benefits that are often overlooked by real estate investors that could allow them to defer or exclude some or all of their income tax liabilities on the sale or disposition of their real estate assets. Real estate investors should have at least a working knowledge of the basics.

Although you generally cannot directly deduct capital expenses, you may elect to recover your investment in a business by depreciating or amortizing your costs over a number of years. The rules for deducting start-up expenses hinge on whether or not you actually open for business.