Discussion:Election to deduct Adm. exp on 1041
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Discussion Forum Index --> Advanced Tax Questions --> Election to deduct Adm. exp on 1041
Discussion Forum Index --> Tax Questions --> Election to deduct Adm. exp on 1041
Cpathatsings (talk|edits) said: | 22 June 2009 |
| Two questions
1. The estate is not required to file a 1041. Adm Expenses are combined Administrative expenses for Estate and Trust. Per the Attorney, he said it was proper to deduct The Administrative Expenses on the 1041 for the Trust. The Election to claim administrative expenses on Form 1041 and not 706 seem to apply to an Estate from what I read, not a Trust. Since the 1041 I am doing is for a Trust, not an Estate, it seems that this election is not required. 2. If I was doing a Form 1041 for the Estate and a 706 was not required, I would still do the election just to be safe saying it was not deducted on 706 and would never be deducted on 706. I feel this election enables you to take the deduction on form 1041 even though 706 is not required. | |
| 23 June 2009 | |
| 1. See Sec. 642(g). The election should be filed by any taxpayer who claims such a deduction.
2. The election is required even if a 706 is not required. | |
| 30 June 2009 | |
| The appropriate language from the section Riley cites is
"in computing the taxable income of the estate or of any other person" The deduction from income can only be taken by the entity responsible for paying the expense. Individuals qualify. | |
