AICPA Issues Guidance for 2007 Returns on Trustee Costs


The AICPA has produced guidance for members preparing 2007 fiduciary income tax returns, in keeping with the recent holding of the U.S. Supreme Court in Knight v. Commissioner . The case (101 AFTR2d 2008-380) affirmed that investment advisory fees of estates and nongrantor trusts generally are subject to the 2% of adjusted gross income floor as miscellaneous itemized deductions, except to the extent they are incremental to or different from what an ordinary individual would commonly incur (see “Tax Matters: Supreme Court Upholds Trust Expense Floor ,” JofA , March 08, page 73). The guidance, prepared by the Section 67(e) Task Force of the AICPA’s Trust, Estate and Gift Tax Technical Resource Panel, addresses such questions as the ruling’s application to investment advisory fees, trustee fees, tax return preparation fees and other costs, as well as substantiation requirements for treatment of items. The guidance may be downloaded here . Other case materials and commentary are available at http://tax.aicpa.org/Resources/Trust+Estate+and+Gift/Trusts .

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.