linduca1216
Level 7
04-04-2021
07:56 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Sole beneficiary paid the tax prep fees from prior year(s) for the trust. Would like to include the tax prep expense on the 1041, line 14, but am thinking since it didn't come from trust account, the trust cannot take the deduction. It is the final year for the trust and all funds went to beneficiary.
Labels
sjrcpa
Level 15
04-04-2021
08:21 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'd probably allow it. It's the same as if the trust paid it and then distributed the rest of the funds.
This is not the technically correct answer.
The more I know the more I don’t know.
BobKamman
Level 15
04-04-2021
08:25 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Cash basis accounting? Beneficiary paid it in 2020?
linduca1216
Level 7
04-05-2021
09:11 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
yes
linduca1216
Level 7
04-05-2021
09:27 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
RE: technical... That's what I thought, too.