Property Tax Assessment

[S T]

Trustee had to pay an additional property tax assessment after a Trust was closed and all funds disbursed.

Where can the Trustee deduct the property tax assessment? Schedule A misc?

Sandy

[Snaggletooth]

Course of Business

The best situation is if the taxpayer performs trustee services for compensation. Then if the trustee cannot (or will not) recover this assessment from the beneficiaries, it becomes a fully deductible business expense, I would think.

If trustee does not have a business then Schedule A is the only opportunity for a deduction. I would claim it as taxes.

[S T]

One time Trustee

Thanks Snags,

This is a one time Trustee of a deceased friend. The property tax assessment was received about 9 months after the close of the Trust and property sold, proceeds distributed to all beneficiaries. so Trustee has no recourse to collect the payment and Trustee didn't think to hold reserve funds for "unknown expenses".

So my thought was Sched A - subject to 2% or Sched A property taxes. I think I am more inclined to Sched A - subject to 2% as that is where estate/trust excess deductions are reported on termination.

Sandy