Where can I enter Legal & Accounting fees from Schedule K-1 Form 1041 on Client Form 1040 individual tax return?

[Just-Lisa-Now-]

The legal and accounting fees for the 1041 should already be incorporated into the figures on the K-1, you wouldn't enter them on the 1040 separately.

[TomK]

Thanks Lisa:

I have entered amounts for Interest income, dividends, other income and the only expense category is "Estate Taxes". I don't see any other area to enter expenses for Legal & Accounting on Form 1041 Schedule K-1 worksheet.

[Just-Lisa-Now-]

They get entered on the front page of the 1041 - Deduction Allocation Smart Worksheet Line 14. The program will automatically adjust the taxable amounts by the amount of the accounting fees allocated to them.  Its not a separate K-1 line item.

[TomK]

The problem is on Form 1040 Schedule K-1 worksheet. There is no where to record the amounts from Form 1041 Schedule K-1 for Legal & Accounting.

[Just-Lisa-Now-]

Thats because its NOT a K-1 line item, the accounting fees included on the 1041 will reduce the amounts of income that are reported on the K-1 already, you dont get to deduct it again anywhere.

Did you prepare the 1041?