Please verify with me for this is the last thing I have to do regarding the taxes on this estate. It has been overwhelming and I have never done this before.
With your help, I believe I will deduct the full amount of attorney fees paid in 2017 that covered charges from 2015 through 2017 regarding the estate (1041 Line 14) from the U.S. bond interest income (1041 line 1).
I am not sure about Schedule K-1, Interest Income Line 1.
There are 4 beneficiaries.
Before: I divided the amount of bond interest the estate received by 4 and entered that amount on each k-1.
After revising 1041 and deducting attorney fees: I divided 1041 line 18 by four and entered this amount on k-1 line 1 for each beneficiary.
The 4 beneficiary's received the U.S. bond interest amount that was divided by 4 in 2017.
Attorney fees were NOT subtracted from the amount the beneficiary's received in 2017. Does this make a difference?
Now that I have deducted attorney fees on 1041, do I enter the amount the beneficiaries ACTUALLY received in 2017 on k-1 line 1, or do I enter the amount of 1041 line 18 divided by 4 for each beneficiary on k-1 line 1?
Thank you again!
