Excess deductions in final year of Trust and Estate flow thru to the Beneficiary on final K-1 isn't showing up in the Schedule A

Forum|Forum|7 years ago
March 21, 2019
1 reply
13 views

The instructions for Sch K-1 (Form 1041) for a beneficiary filing Form 1040 (2018) says that "If this is the final return of the estate or trust, and there are excess deductions on termination, you may deduct the beneficiary's share of the excess deductions on line 16 of Schedule A (Form 1040)" however this it not working in the Lacerte program. Any suggestions on how to input it correctly so it will work? Lacerte said is was supposed to be corrected in the March 5, 2019 (Version 39.0305) but it doesn't appear that has been corrected yet.

Lacerte Tax

This topic has been closed for replies.

Best answer by mdavolio

Hi Becky,

We do not deduct these expenses currently because the Schedule A instructions and the Regulations say you cannot deduct this. The 1041/k-1 instructions say you can. We asked the IRS and they have not yet answered our question. Consequently, we take the conservative approach and do not deduct the expenses.

If you would like to deduct the expenses, please enter them in "Other Itemized Deductions" in screen 25.

Thank you,

Mike D'Avolio

M

mdavolioAnswer

Level 4

Hi Becky,

We do not deduct these expenses currently because the Schedule A instructions and the Regulations say you cannot deduct this. The 1041/k-1 instructions say you can. We asked the IRS and they have not yet answered our question. Consequently, we take the conservative approach and do not deduct the expenses.

If you would like to deduct the expenses, please enter them in "Other Itemized Deductions" in screen 25.

Thank you,

Mike D'Avolio

Sign up

Login with SSO

Let's get you signed in

Login with SSO