Income Tax Planning – Deductions for Administrative Expenses Under the Final Regulations

It’s the Fourth Quarter for corporate trustees who are burdened with the decision of how to implement the final regulations under Section 67 issued by the IRS last May. These regulations, govern the costs incurred by trusts and estates that are subject to the 2-percent floor on miscellaneous itemized deductions under Section 67. The regulations apply to tax years beginning on or after May 9, 2014, and thus for existing trusts using a calendar year, 2015 will be the first tax year governed by the new regulations.