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Legal fees/expenses on Estate 1041


Art

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I poseted this a few days ago, but I could not find it back so pardon me if you have replied and I missed this.

1. Are attorney fees paid by an estate fully deductible on the 1041 line 14?

Estate consisted mostly of farm property in which the decedent had a partial ownership. Farm was actively operated on crop share basis, but decedent was not active in the business. The other assets consisted of small bank account and some savings. Ownership of the assets were transferred to children from the estate. From reading past posts there seems to be a disagreement on deductibility of legal fees. Deductibility allowed for preservation of income producing property vs transfer of title/ownership of personal assets. Is this the proper framework for determining deductibility? In this case fully deductible?

2. Second issue is deductibility of appraisal fees, title work and transfer on death fees. Deductible, subject to 2% of income? Fully deductible? Non-deductible?

This issue is always troublesome. I would appreciate response from those with experience on these issues.

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>>In this case fully deductible?<<

In WHAT case? You haven't mentioned what the legal fees were for.

>>appraisal fees, title work and transfer on death fees<<

I presume title work is an addition to basis and the rest are miscellaneous deductions for the estate, but again, you haven't mentioned what the purpose of these expenses was.

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Sorry, I got ahead of myself when I posted the question. The legal fees, appraisal fees and title transfer fees are all in connection with the transfer of the farm land and liquidation of some small investments that were held by the decedent and passed throught the estate to the estate heirs.

>>In this case fully deductible?<<

In WHAT case? You haven't mentioned what the legal fees were for.

>>appraisal fees, title work and transfer on death fees<<

I presume title work is an addition to basis and the rest are miscellaneous deductions for the estate, but again, you haven't mentioned what the purpose of these expenses was.

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