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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4100
Experience:  35 years tax experience, including four years at a Big 4 firm.
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Can special needs tax return 1041 deduct rental fee and

Customer Question

can special needs tax return 1041 deduct rental fee and payroll expenses?
JA: Thanks. Can you give me any more details about your issue?
Customer: file 1041 for parent who had special needs trust and paid rent fee and pay worker's wages. Can fees be deducted?
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Submitted: 8 months ago.
Category: Tax
Expert:  PDtax replied 8 months ago.

Hi from Just Answer. I'm PDtax. I'll assist.

Yes, the SNT can deduct payroll expenses and rental fees against its income. The expenses should be for the established purpose of the trust, but both can be deducted.

Thanks for asking at Just Answer. Positive feedback is appreciated when you rate my assistance. I'm PDtax.

Customer: replied 8 months ago.
Which line of 1041? Are you a CPA?
Thanks!
Expert:  PDtax replied 8 months ago.

The 1041 reporting of rents is on line 15a, allocated between taxable and tax-free incomes.

Payroll is deducted on the same schedule.

I am a CPA, licensed in New York. You can check my credentials on the site. I own a CPA firm.

I have a special needs trust as one of my personal tax clients.

PDtax

Customer: replied 8 months ago.
Thanks!
Expert:  PDtax replied 8 months ago.

Please rate my assistance to close out your question. I'm glad to help.

PDtax