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Level 1
posted Feb 20, 2025 2:11:21 PM

Can tax preparation fees be deducted from the income of a simple trust on Form 1041

Tax preparation fees for tax year 2023 paid in 2024. This is a simple trust.

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1 Best answer
Expert Alumni
Feb 20, 2025 2:16:30 PM

Yes, on line 14. 

"Expenses for preparation of fiduciary income tax returns, the decedent's final individual income tax returns, and all estate and GST tax returns are fully deductible. However, expenses for preparing all other tax returns, including gift tax returns, are considered costs commonly and customarily incurred by individuals and are not deductible."

IRS link 

3 Replies
Expert Alumni
Feb 20, 2025 2:16:30 PM

Yes, on line 14. 

"Expenses for preparation of fiduciary income tax returns, the decedent's final individual income tax returns, and all estate and GST tax returns are fully deductible. However, expenses for preparing all other tax returns, including gift tax returns, are considered costs commonly and customarily incurred by individuals and are not deductible."

IRS link 

Level 1
Feb 20, 2025 2:29:30 PM

Thanks, that helps, but I need to confirm one thing: in the case of the simple trust I administer, the "fiduciary tax return" is the return filed on Form 1041 under the trust's EIN.  Correct?  Again, thank you so much for your answer.

Expert Alumni
Feb 20, 2025 2:43:22 PM

That is correct.  A 1041 is a fiduciary tax return for a trust.

 

@TLKite