I am completing a 1041 for my father's estate. I was ready to enter my attorney fees and accounting fees paid in 2021 for my father's estate. TT asks to separate between Fees allocated to taxable income and fees allocated to tax exempt income. What does this mean? The fees were for preparing tax returns, and for legal guidance administrating the estate.
The largest accounting fee was for preparation of the State Estate Tax return - is this deductable? And - on a longshot - is the amount paid for state estate tax deductable?
