On September 21, the IRS issued final regulations in T.D. 9918. The final regulations adopt the proposed rule specifying that Code Sec. 67(e) expenses remain deductible in determining an estate or non-grantor trust's AGI during years 2018 - 2025 without modification. In addition, the final regulations provide clarifications and modifications in response to practitioners' comments.

The final regulations apply to tax years beginning after the date of publication in the Federal Register, but taxpayers may choose to apply the amendments to Reg. Sec. 1.67-4, Reg. Sec. 1.642(h)-2, and Reg. Sec. 1.642(h)-5 in T.D. 9918 to tax years beginning after December 31, 2017.