Where in TT Business do I deduct a trust legal expenses 2018 return?

iOne — Sat, 01 Jun 2019 18:03:21 GMT

Given all the changes in the 2018 tax code, where in TT Business will a trust record deductible legal expenses?

In a trust with dividend income and holding rental property, where are the general (trust related) expenses deducted against?

What if those legal expenses result in a loss (meaning greater than the total rental income and trust income)?

"The IRS’s Notice 2018-61 clarifies that an estate or trust may continue to deduct expenses incurred in the administration of an estate or trust, which would not otherwise be incurred if the property were not held in such estate or trust."
https://www.schgroup.com/resource/blog-post/the-tcja-impact-on-estate-and-trust-miscellaneous-deductions/
https://www.thetaxadviser.com/issues/2018/dec/clarification-itemized-deductions-trusts-estates.html

" where in TT Business will a trust record deductible leg...

Anonymous_ — Sat, 01 Jun 2019 18:03:24 GMT

" where in TT Business will a trust record deductible legal expenses?"

You would enter general trust expenses in the Federal Taxes tab, Deductions section, Expenses, taxes, and fees (see screenshot) but the rental expenses would be entered in the Income section under Rental and royalty properties.

If the trust has a loss on Line 22 of your 1041, it may have an NOL since it has rental income. You will need to complete Form 1045 to figure the amount of the NOL.

See https://www.irs.gov/instructions/i1041#idm140630131281904

topic Where in TT Business do I deduct a trust legal expenses 2018 return? in Business & farm

Where in TT Business do I deduct a trust legal expenses 2018 return?

" where in TT Business will a trust record deductible leg...