Successor's trustees fees when the grantor is still alive.

[john-b]

Grantor is original trustee; she became incapacitated and a successor trustee, administering the trust, is charging trustee's fees.  The only trust asset is a rental property.  Where are the trustee's fees reported?  

[tagteam · Accepted solution]

" Where are the trustee's fees reported?"

If you are going to continue to treat this trust as a grantor trust (which you most likely should in the absence of language to the contrary in the trust instrument or state law), then the fees will be reported as a miscellaneous itemized deduction on Line 28 of Schedule A.

In TurboTax, accomplishing the foregoing is difficult without having access to Forms Mode (available in the desktop (CD/Download software) and doing an override. 

Regardless, the fees should not be subject to the 2% limitation (which is simple to enter with TurboTax) and the solution for online products, albeit rather imperfect, appears in the screenshots below.