1041, Federal Taxes, Other Deductions

[tmkratzke]

I am working on my father's estate using TurboTax Business; he passed away in Aug, 2019, and this is a non-final return.  My father's only asset was a brokerage account, which we converted to cash in Nov, 2019.  He had 4 beneficiaries, and we made large distributions, retaining enough for remaining expenses.  In TurboTax, under Federal Taxes/Income/Allocation of Capital Gains, I entered the full amount that TurboTax suggested.

The estate account established by the brokerage firm after my father passed away did the following

1. Paid the lawyer who started the estate.

2. Reimbursed funeral expenses

3. Paid off medical bills

4. Paid for death certificates, etc..

Can I enter any of those in Federal Taxes/Deductions/Other Deductions?  As things now stand, the estate will pay no taxes on its return, but the K-1's will show less "Net long-term capital gain" if I enter these expenses.

Thanks

[tagteam · Accepted solution]

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@tmkratzke wrote:

Can I enter any of those in Federal Taxes/Deductions/Other Deductions? 

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Yes, except for medical and funeral expenses, which you do not deduct on Form 1041. Medical expenses of the decedent paid by the estate may be deductible on the decedent's income tax return for the year incurred. 

See https://www.irs.gov/instructions/i1041#idm140366309669472

[tmkratzke]

Thank you!