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

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.