Given the following:
•Original Bank #1 Trust acct (of deceased who died in Oct 2021) distributes in full on Feb 2022 to a New Bank Trust acct (opened by successor trustee with new TIN)
•Original Bank #1 uses 65 day rule and creates a 2021 1099 for New Bank Trust acct TIN (post death to Feb 2022 timeframe), 1099 includes $4000 income (interest), distribution into new trust account is $300K (principal and income)
•Attorney effort and fee ($3000) to enable this distribution (trustee selection, opening of trust, …) spans post death to Jan 2022 timeframe, fee paid by trustee in Feb 2022 (within 65 day time for 2021)
•deceased residence and state of original and new trust acct is FL
Can the Attorney Fee be deducted on the New Bank Trust acct TIN 2021 tax return, to offset the 1099 income ($4000-$3000=$1000 taxable)?
Likewise, if Turbotax Business 2021 is purchased in Jan 2022, can the cost be deducted on the 2021 New Bank Trust acct TIN (if used to prepare the 2021 trust tax return)?
side note (in case wondering) - Original Bank #1 Trust acct also generates a 2021 1099 for personal SSN tax return of the deceased for pre-death timeframe
