Common questions about Fiduciary Elections in Lacerte

1. Open Screen 50, Elections.
2. In the Election list, select Miscellaneous Election.
3. Select the check box for Deduct Expenses on Form 1041.

Note: This entry will print the Election to Waive the Right to Claim Administration Expense on Form 706. The program will automatically include Fiduciary Fees, Attorney, Accountant and Preparer Fees and Other Deductions in the election

To generate the required election statement:

1. Go to Screen 31 Taxes and Fees
2. Enter Fiduciary Fees and/or Attorney & Accountant Fees
3. Then go to Screen 50 Elections, and click on the Miscellaneous Elections link
4. Miscellaneous Elections section select checkbox Deduct Expenses on 1041

If applicable, check the Print signature block with election box

The fees shown on the election statement are taken from Screen 31, Taxes and Fees. Screen 31 also has a section, Form 706 Election, containing input fields that override the calculated numbers on the election statement only.

Note: The program will automatically include Fiduciary Fees, Attorney, Accountant and Preparer Fees and Other Deductions in the election.

1. Open Screen 50, Elections.
2. In the Election list, select Misc. Elections.
3. If the fiduciary elects to forgo the net operating loss carryback period, select the check box for Waive Net Operating Loss Carryback Period [172(b)(3)].

For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. See Net operating losses for more information.

Note: Enter any prior year net operating losses in Screen 33, NOL Carryover: Regular Tax and NOL Carryover: Alternative Minimum Tax.