1041 Other Deductions Allowed for a Trust

Forum|Forum|1 year ago
September 5, 2024
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1041 line 15a is "Other deductions (attach schedule). See instructions for deduction allowable under section 67(e)"

I am completing the 1041 for a trust. I'm having difficulty interpreting section 67(e) and would appreciate your help identifying what can be deducted on the trust tax return. My mother passed away last year. I am in charge of the estate and trust.

I paid funeral expenses (funeral home, church, flowers, pastor, musicians, and memorial celebration). Are these expenses deductible on line 15a?

I paid a fee to have the house appraised for value on date-of-death. Is that expense deductible here?

I paid estate tax in my state. In order to pay the tax, I sold stock that was in the trust. The brokerage charged commissions and fees on the sales of the stock. Are those commissions and fees deductible on line 15a?

Are there other common things that can be deducted in the management of a trust or estate?

This should be the first and final 1041 submitted for this trust.

Thanks for your help.

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Anonymous_

Employee

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budsara1Author

Thanks for your response, tagteam.

I live in a state that imposes an "Estate Transfer Tax," which is separate from and in addition to the state income tax on the trust income. In order to pay that estate transfer tax, I sold stock that was in the trust. So, I was thinking the commissions and fees might be considered an administrative expense since the only reason the stock was sold was to pay the tax on the estate.

Appreciate your feedback.