Customer brought in a K-1 form from an irrevocable life insurance trust from his deceased parents.
It is marked as both the initial and final K-1 form for this entity.
No income appears on the K-1 but $2,500 is shown on line 11 with an "A" designation and with further instructions of "67(e) expenses
from fiduciary fees to be used at arriving at A.G.I". There is a further reference to form 8960 for "excess deductions allocable to net investment income".
My software populates this amount as an A.G.I. adjustment and subtracts it.
Customers (MFJ) have an A.G.I. of only $46-K.
Is this the correct way to handle the $2,500? Thanks for comments.
It is marked as both the initial and final K-1 form for this entity.
No income appears on the K-1 but $2,500 is shown on line 11 with an "A" designation and with further instructions of "67(e) expenses
from fiduciary fees to be used at arriving at A.G.I". There is a further reference to form 8960 for "excess deductions allocable to net investment income".
My software populates this amount as an A.G.I. adjustment and subtracts it.
Customers (MFJ) have an A.G.I. of only $46-K.
Is this the correct way to handle the $2,500? Thanks for comments.