TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

Can you deduct the fees paid for legal fees of creating and maintaining a Family Trust?

Forum|Forum|7 years ago
June 3, 2019
1 reply
5 views

Are Fees paid to AmeriEstate Legal Plan in terms of servicing a Family Trust deductable?

ItsDeductible Online

Level 12

Yes, trust preparation fees are deductible if the billing invoice identifies your expenses as being for the production/collection/managing future production of income or tax. Per IRS, you can deduct legal fees if they are incurred for:

the production or collection of income, or
the management of the property held for production of income, or
tax advice and tax planning

For example, you paid fees for advice on the income trust or for advice on the property transfer to avoid federal/state or inheritance tax, or investment advice for trust -those fees would be tax deductible.

If your total legal fees include both, deductible and nondeductible items, you must somehow allocate the amount between allowed and disallowed fees.

Legal fees are deducted in the Deductions & Credits section:

Federal Taxes

Deductions and Credits
Scroll down to Other Deductions and Credits
Select Legal Fees

Level 2

has this changed for this year?

I have a trustee fees I incurred.

I have miscellaneous fees related to the trust that I incurred.

on the grantor letter these are allocated income to principle.

are these fees deductible and if so, where in the software?

Level 2

Is there a link to the specific IRS code covering this point?