I'm pretty sure I know the answer but I want to be sure.
When I hired a lawyer for the estate I had to pay money into an IOLTA trust. All legal fees were then deducted from this initial deposit. I only spent 1/2 of the money. The lawyer is going to close the trust and distribute the remaining money to the heirs.
I deducted the entire amount on the 1041 the tax year I paid it . Deduct it when you write the check was the rule. Now that I did not use the entire amount for legal fees do I have to put a negative amount for legal fees in the final return? I assume I do but need to verify.
Thank You
