K-1 (OTHER DEDUCTIONS / 2% fees)

[MRPLOW]

I have a K-1 (Form 1041) with an additional sheet listing deductions.
Total dividends are $10,000 (qualified), this is the only income on the K-1

DEDUCTIONS ARE:
- State taxes $1000
- Fiduciary fees $4000
- Other deductions, subject to 2% floor $2000

Are any of these fees deductible on Schedule A?

[Uncle Sam]

I suggest you find out what the "Other Expenses" consist of.

[taxea]

The K-1 should include a page that explains the expenses and tells the TP where, on return, to report them.

[Burke]

I have a K-1 (Form 1041) with an additional sheet listing deductions.
Total dividends are $10,000 (qualified), this is the only income on the K-1

DEDUCTIONS ARE:
- State taxes $1000
- Fiduciary fees $4000
- Other deductions, subject to 2% floor $2000

Are any of these fees deductible on Schedule A?

If your client has a K-1 showing income, then generally that means he received some sort of distribution from the trust/estate, whichever it was. That income passes through to the beneficiary, but it is NET income adjusted after taking into consideration these expenses, which should have been allocated to the trust/estate and deducted on page 1, Form 1041. They do not pass through, as you seem to describe, to the beneficiary. I would ask for a copy of the trust return. It does not sound right. Was this a final year? Did he actually receive a distribution? Is this an estate, simple trust, complex trust, or other type of return?