Test $-$ Spotlight on Form $1041(2024)$

Income and Deductions

Question $10$ of $10.$

An estate has fiduciary fees of $$2,000$ for accounting, $$900$ for probate court, and $$100$ for certified copies made of the decedent's death certificate. Form $706$ is not required. On which tax return will the deductions be reported?

The estate may deduct $$3,000$ on Form $1041$ and will need to make a Section $1\mathrm{.}642(g)$ election, even though Form $706$ was not required.

The deductions must be divided between the estate on Form $706$ and Form $1041,$ even when Form $706$ is not filed.

The estate may deduct $$3,000$ on Form $1041$ and will not need to make a Section $1\mathrm{.}642(g)$ election because Form $706$ was not required.

These deductions are not allowed on Form $1041.$ Therefore, an election will not be required.

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Summary