For an irrevocable, special needs trust where do I enter non-professional expenses related to his care - ie housing, caretakers (non-professional), etc?

I'm preparing a 1041 for an irrevocable, special needs trust for the benefit of my brother. Where do I enter expenses related to administering the trust? I see where to put professional fees (attorney fees, etc), but what about expenses related to his care - housing, caretakers, etc? Where do I enter those expenses?

1200

1 Best answer

Level 15

Jun 4, 2019 3:27:15 PM

" Where do I enter those expenses?"

None of those expenses are deductible on a 1041 as they are either considered personal expenses of the beneficiary or medical expenses.

See https://www.irs.gov/instructions/i1041#idm139674712270288

The beneficiary, however, may be able to deduct some of the expenses, if medically related, on his/her personal income tax return.

Level 15

Jun 4, 2019 3:27:15 PM

" Where do I enter those expenses?"

None of those expenses are deductible on a 1041 as they are either considered personal expenses of the beneficiary or medical expenses.

See https://www.irs.gov/instructions/i1041#idm139674712270288

The beneficiary, however, may be able to deduct some of the expenses, if medically related, on his/her personal income tax return.

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For an irrevocable, special needs trust where do I enter non-professional expenses related to his care - ie housing, caretakers (non-professional), etc?