Looking for confirmation of understanding of current tax law. For a decedent passed in 2023, excess deductions in an estate return (1041) can get passed to beneficiaries on form K-1. Beneficiaries in turn enter these amounts on Schedule 1 Line 24. This amount in turn goes to the beneficiary form 1040 Line 10 as an adjustment to income. I don't see there is any limit to these amounts.
Posts from other threads seemed to state that inherited excess deductions can only be used if the beneficiary itemizes deductions but that seems incorrect.
I am still wading through the deductions allowable on the 1041, but it is clearly stated that funeral expenses are NOT deductible while most attorney and accounting fees can be deducted. It is a bit strange that accountant fees for preparing the 1041 are deductible on the 1041.
Posts from other threads seemed to state that inherited excess deductions can only be used if the beneficiary itemizes deductions but that seems incorrect.
I am still wading through the deductions allowable on the 1041, but it is clearly stated that funeral expenses are NOT deductible while most attorney and accounting fees can be deducted. It is a bit strange that accountant fees for preparing the 1041 are deductible on the 1041.
Statistics: Posted by SpideyIndexer — Sat Aug 31, 2024 10:51 pm — Replies 0 — Views 140