Grantor trust questions

[JML222]

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.

[Hoody1896]

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.

[JML222]

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.

[Hoody1896]

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

[JML222]

K-1 is not final hence inappropriate to use that as an entry field.

Thank you!

[sjrcpa · Accepted solution]

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

[JML222]

Thanks!

[sjrcpa]

You're welcome.