Question

in 2018 fiduciary fees necessary for the administration of an estate:a) are subject to the 2% of agi limitation:b) are a miscellaneous itemized deduction disallowed for 2018-2025:c) are fully deductible on both forms 706 and 1041:d) are fully deductible on form 1041 or 706 ,but not both

Answer 1

IRS provisions state that administration expenses include fees for paid to fiduciary for administering the state. The taxpayer can deduct the expense incurred by it for administration expenses as an expense against estate tax or the annual income tax against the estate. Deduction against federal state tax is done using Form 706 and deduction against estate income tax is done using Form 1041. However, the taxpayer can claim for one of these two options only.

Hence, correct option is d. are fully deductible on form 1041 or 706 ,but not both