Schedule k1 dealing with legal and accountant fees. How does a beneficiary benefit (deduct the legal/accountant fee)?

[debraredhead]

I am the trustee of a Family trust from my parents. The trust has one source of income which is mortgage carry back loan interest.

The trust had legal and tax accounting fees billed in 2016 for the 2015 tax year.(year of sale).

 I am doing the taxes this year and can see that these fees go onto line 14. My question is where do I transfer these costs on the beneficiaries sch k1's?  

And how do they take advantage of these costs on their Form 1040?

[Cattlerancher]

I believe the Trust itself will claim the legal and accounting fees which reduces the income distributed on K-1's to the beneficiaries. When you begin your Trust tax return in TurboTax Business it will ask if you want to utilize K-1's to distribute the income. Based on your answers in the interview and your entries, TurboTax will automatically fill the K-1's with the correct amounts to the beneficiaries. Then they enter the K-1 into their tax returns. K-1's have their specific entry section in the 1040 TurboTax versions similar to the W-2 or 1099 entry section.