1041

[CTC]

Where are attorney and accounting fees deducted on a final 1041 estate return?

Thanks!

[BobKamman · Accepted solution]

On Line 14, where it says "Attorney, accountant, and return preparer fees."

[CTC]

So, since there is no income then it doesn't go anywhere. Is that correct.

Thanks

[BobKamman]

If there is no income, why are you filing a return? You can ignore the notice they sent when you applied for an EIN. 

If you are trying to pass through Section 67(e) deductions to the beneficiaries -- you probably should have more experience with preparing 1041's first.  

[CTC]

I've done plenty of 1041s but haven't done one with no income. It's being done because the losses are going to the beneficiaries, otherwise as was stated I wouldn't be doing it. It's a fiscal year, not my choice, but the trustee thought they would save money, but it actually cost more. Luckily this is the final return.

[sjrcpa]

They will pass out on the K-1s as Excess Deductions on Termination.