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Gary12345
New Member

How to deduct trustee fee in Turbotax

I am the grantor of my living trust. I have appoited a trustee and  I pay him trustee fee. How am I going to deduct the trustee fee in Turbotax when I file my tax?

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1 Reply
M-MTax
Level 11

How to deduct trustee fee in Turbotax

Exactly what is the trustee doing? The fact of the matter is that the trust, as a grantor trust, is indistinguishable from you for federal income tax purposes. 

 

There are a few scenarios here one of which would be where you're paying someone to manage your rental property or properties. If that's the case, a management fee could be deducted from your rental income. Similarly, the fee could be deducted if the individual you are paying is managing or running an actual business.

 

If, however, the trustee appointed is doing nothing more than overseeing your investments (e.g., an investment advisor), then that fee would not be deductible in whole or in part.

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