Journal of Accountancy
By Paul Bonner September 22, 2020

The IRS on Monday issued final regulations (T.D. 9918) clarifying that certain expenses incurred by, and certain excess deductions upon the termination of, an estate or nongrantor trust are not affected by the suspension of miscellaneous itemized deductions for tax years 2018 through 2025. The regulations also provide guidance on determining the character, amount, and allocation of excess deductions that are succeeded to by beneficiaries.

The final regulations adopt with few changes proposed regulations issued in May 2020 (REG-113295-18; see also “Trusts and Estates Are Permitted Certain Deductions”). Read more.