Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-25-2017, 04:12 PM
Junior Member
 
Join Date: Jan 2017
Posts: 1
for a 1041 closing down

A question regarding closing a 1041. While the final year is to be TY ended 12/31/16 and all will be distributed in Jan/Feb (65 day rule), there is a large attorney fee owed of $35,000, which is being paid end of January (now). Is there any way this can be used on the 2016 return although paid in early 2017. Seems this is a common situation on shutting down and while attorneys and accts I've talked to claim it's deductible and usable in 2016, from what I've read it is NOT under Section 663 (65 day rule) which seems to pertain to beneficiary distributions. Does anyone have solid backup that this is indeed deductible and any citing of authority? Thanks so much!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-26-2017, 07:12 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by taxsoldier View Post
A question regarding closing a 1041. While the final year is to be TY ended 12/31/16 and all will be distributed in Jan/Feb (65 day rule), there is a large attorney fee owed of $35,000, which is being paid end of January (now). Is there any way this can be used on the 2016 return although paid in early 2017. Seems this is a common situation on shutting down and while attorneys and accts I've talked to claim it's deductible and usable in 2016, from what I've read it is NOT under Section 663 (65 day rule) which seems to pertain to beneficiary distributions. Does anyone have solid backup that this is indeed deductible and any citing of authority? Thanks so much!


Correct; it is not subject to Sec 663 . The answer is, in the year of payment (assuming they are deductible). I mean on your 2017 return When filing Form 1041 for a decedent, estate, or trust, you must determine how to deduct administration fees. Deductions for attorney, accountant, and preparer fees are limited on Sch A of Form 1040. the deduction will be subject to the 2 % of AGI exclusion, where only amounts greater than 2% of AGI can be deducted on your return;



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Form 1041 Question bunny18 Trusts and Gift Tax Returns 8 08-27-2015 09:12 PM
Date of Closing for deducting closing costs sllauber Itemized Deductions 3 12-27-2012 03:17 PM
1041 Schedule B - Corpus Music78 Trusts and Gift Tax Returns 0 03-29-2012 09:16 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.