The trust terminates 12/31/06 so final year 1041. Accountant and Trustee are paid in Jan '07 for 06 work performed. Can the cks for these fees be deducted on the final 06 1041 even tho not pd till '07? There will be no more returns.
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You are generally allowed to accrue final bills paid shortly after the termination of an entity, such as a trust or an estate, assuming the bills were incurred prior to the close of the trust. Any expenses incurred after the close of the trust would have to go on Schedule A, subject to the 2% AGI limitation. -
bene is non-profit
Thank you for helping. They are not accrued. The beneficiary is a non-profit which I know won't get the expense like on an individual so it was throwing me. I'll leave the expenses off the 1041 and let the non-profit deal with the 2007 expenses.Comment
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