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Deductions & credits
The transfer from Bank #1 to Bank #2 is just that; a transfer. It was not a distribution so there was no need to use the 65-day rule (Section 663(b)).
Regardless, I, for one, do not see an issue with deducting the attorney fees from the trust's income on the 2021 trust return.
‎February 10, 2022
2:47 PM