Deductions & credits
Yes, trust preparation fees are deductible if they are for:
- the production or collection of income, or
- the management of the property held for production of income, or
- tax advice and tax planning
If your total legal fees include both the above and other fees for non-deductible items (that don't meet the above criteria) you will need to allocate the amount between deductible and non-deductible items.
These expenses are part of allowable itemized deductions (so you will need enough itemized deductions to make them count.)
- Federal Taxes
- Deductions & Credits
- Scroll down to Other Deductions and Credits
- Select Legal Fees
