Deducting it at the time did not seem right to me. But I had an accountant helping me at the time and he said to include the entire deposit in that years taxes but make sure not to deduct any legal fees on future taxes until the trust is used up. I guess he did not expect the trust to not be used up.
I was so looking forward to being done. -this really complicates things. The tax year ended 5/31/22 and there was no more income expected as this was to be the final 1041. Executor fee has been paid, all final fees paid, all distributions done. Now there is additional income of well over $600.00 (so a 1041 has to be filed) and also distributions of that income in the next tax year. So - The return I thought was final is no longer final and I have to submit a short return for one month including only the iolta refund. Is that correct?
Thank You for the assistance.
