Level 5

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Grantor trust questions

Forum|Forum|4 years ago
March 25, 2022
2 replies
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Not being too familiar with 1041's, really appreciate this forum.

I have a Grantor trust where the income passes through to the Grantor, included on Grantors Sched D,. Thus showing no income for the trust. My question is this, how do I account for bond and accounting expenses related to the trust? Using Basic and fillable 1041 PDF.

TIA.

ProSeries Basic

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Best answer by sjrcpa

The bond and accounting fees are not deductible. They were misc itemized deductions subject to the 2% of AGI rule, but currently not allowed.

Level 3

In my opinion.. If you have the K-1 or Grantor Letter from the Trust... Just enter as a K-1 and it should flow to the proper areas.

JML222Author

Level 5

Thanks for the insight!

The only place I see that would make sense on a K1 entry would require checking Final Year Deductions. Which is not accurate. Hmmm.

Level 3

I would have to look later ( I am currently at work) ... Why would it be final year deductions... Is the K-1 Final ?

sjrcpaAnswer

Level 15

The bond and accounting fees are not deductible. They were misc itemized deductions subject to the 2% of AGI rule, but currently not allowed.

The more I know the more I don’t know.

JML222Author

Level 5

Thanks!

Level 15

You're welcome.

The more I know the more I don’t know.