You'll need to sign in or create an account to connect with an expert.
It is if the fee is paid for by the estate.
If you paid the fee out of personal funds, the estate should reimburse you.
First, any tax deduction can only be taken against taxable income. You can’t deduct personal legal fees that are unrelated to taxable income.
If the estate has ongoing income (like a writer or musician), legal fees to administer the estate might be deductible business expenses against the ongoing income. However, most personal estates (like your parent) will not meet this test, and legal fees are not deductible on your personal tax return and will generally not be deductible on the estate tax return if the estate is required to file a return.
As said, the estate should pay any legitimate expenses incurred by the administrator before dividing the remaining balance among the heirs.
Costs (including legal fees) that that are paid or incurred in connection with the administration of an estate that would not have been incurred if the property were not held in such estate are fully deductible on Form 1041 (or an estate tax return).
See https://www.govinfo.gov/content/pkg/FR-2020-10-19/pdf/2020-21162.pdf
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
dgroThe526
New Member
wp6410
Level 1
coolie740
Level 2
trishglxk
Level 1
49ermom
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.