Question

Ordinary and necessary administration expenses paid by the fiduciary of an estate are deductible:

a. Only on Form 706.

b. Only on the fiduciary tax return Form 1041.

c. On the fiduciary tax return Form 1041 or the 706.

d. On both the fiduciary tax return and the estate tax return.

Answer 1

Ans (C )

Estate Fiduciary Income tax Form—1041

Federal Estate Tax Return Form—706

Ordinary and necessary administration expenses paid by the fiduciary of an estate are deductible: On the fiduciary tax return Form 1041 or the 706.

It is necessary to prepare proper treatment on the ordinay and necessary expenses on the fiduciary of an estate.This expenses can be deducted in either of the two form 1041 or 706 .If these expenses is deducted from Estate Fiduciary income tax form ,the potension estate tax deduction must be waived. IT is not shown at the same times in both the two returns.