Turbo Tax Business for Living Trust/Funeral Expenses

[TECTopca]

I'm doing the 2023  estate taxes for my my mom who passed away . My question has to do with funeral expenses that were paid for out of the living trust . If these were paid for by the Living Trust tare tax deductible? or is that only for estates over $13 million, definitely not this one, I see online that it would go on a form 706 but I do not see anywhere in the program to do that , deduct funeral expenses? 

Thank you

Todd 

[Mike9241 · Accepted solution]

Sorry for your loss.

Funeral expenses are deductible on an estate * tax return form 706  (* notice the omission of the word income) not an estate income tax return which is form 1041. Turbotax does not do form 706. Turbotax Business is required for form 1041. There are other expenses that are only deductible on form 706.

Form 706 must be filed by the executor of the estate of every U.S. citizen or resident:

• Whose gross estate, adjusted taxable gifts, and specific exemptions total more than the exclusion amount: $12.92 million for decedents who died in 2023 ($13.61 million in 2024), or
• Whose executor elects to transfer the “deceased spousal unused exclusion” (DSUE) amount to the surviving spouse, regardless of the size of the decedent’s gross estate.

There is a substantial difference between what's reported on a 706 (filed only once and 1041 (filed annually if income exceeds the reporting limits until nothing is left). if you are not sure what goes on the 1041 then using a pro is advisable since apparently as executor you could be responsible for any penalties as a result of misreportings.  you can start by reading the 1041 instructions to see if you want to do it.

https://www.irs.gov/pub/irs-pdf/i1041.pdf 

[tagteam]

I agree with @Mike9241 

See https://www.irs.gov/instructions/i1041#en_US_2023_publink100077445

[TECTopca]

tku