{"id":8289,"date":"2020-10-25T16:53:23","date_gmt":"2020-10-25T20:53:23","guid":{"rendered":"https:\/\/resources.evans-legal.com\/?p=8289"},"modified":"2020-10-25T16:53:25","modified_gmt":"2020-10-25T20:53:25","slug":"draft-instructions-to-schedule-k-1-of-form-1041-for-2020","status":"publish","type":"post","link":"https:\/\/resources.evans-legal.com\/?p=8289","title":{"rendered":"Draft Instructions to Schedule K-1 of Form 1041 for 2020"},"content":{"rendered":"\n<p>The <a href=\"https:\/\/www.irs.gov\/pub\/irs-dft\/i1041sk1--dft.pdf\">latest (10\/21\/2020) draft of instructions to the Schedule K-1 for Form 1041<\/a> provides guidance for reporting excess 67(e) deductions by beneficiaries of terminating estates and trusts that is similar to the guidance that was <a href=\"https:\/\/resources.evans-legal.com\/?p=8103\">previously reported from the IRS website<\/a>.  The instructions now say:<\/p>\n\n\n\n<p>&#8220;<strong>Box 11, Code A&#8211;Excess Deductions on Termination &#8211; Section 67(e) Expenses<\/strong><br>&#8220;If this is the final return of the estate or trust, and there are excess deductions on termination that are section 67(e) expenses reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code A, as an adjustment to income. Report this amount as a write-in on Schedule 1 (Form 1040), Part II, line 22.  On the dotted line next to line 22, enter the amount of the expense using the code &#8216;ED67(e)&#8217;.  Include the expense in the total amount reported on line 22.&#8221;<\/p>\n\n\n\n<p>Excess deductions that are not 67(e) deductions and are not miscellaneous itemized deductions are reported by individuals on Schedule A of Form 1040 on the appropriate line for the type of deduction.  (The draft instructions state that &#8220;The fiduciary will provide you with a statement of allowable deductions.&#8221;)<\/p>\n\n\n\n<p>What is not addressed by the draft instructions is how a testamentary trust would report excess 67(e) deductions on the termination of an estate, and that question has been submitted to the IRS as a comment on the draft.<\/p>\n\n\n\n<p>For an explanation of the new regulations on the treatment of excess deductions on termination of estates and trusts, see &#8220;<a href=\"https:\/\/resources.evans-legal.com\/?p=8203\">Final Regulations on Administration Expenses and Excess Deductions<\/a>.&#8221;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest (10\/21\/2020) draft of instructions to the Schedule K-1 for Form 1041 provides guidance for reporting excess 67(e) deductions by beneficiaries of terminating estates and trusts that is similar to the guidance that was previously reported from the IRS &hellip; <a class=\"more-link\" href=\"https:\/\/resources.evans-legal.com\/?p=8289\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[29],"tags":[742,597],"class_list":["post-8289","post","type-post","status-publish","format-standard","hentry","category-news-items","tag-excess-deductions-on-termination","tag-fiduciary-income-tax","pmpro-has-access"],"_links":{"self":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/8289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8289"}],"version-history":[{"count":5,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/8289\/revisions"}],"predecessor-version":[{"id":8300,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/8289\/revisions\/8300"}],"wp:attachment":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}