The IRS recently proposed new regulations for estates and trusts, clarifying that certain deductions of estates and non-grantor trusts are not miscellaneous itemized deductions.
The proposed regulations clarify several deductions that are allowable in figuring adjusted gross income and are not miscellaneous itemized deductions.
The guidance also clarifies how to determine the character, amount and manner for allocating excess deductions that beneficiaries succeeding to the property of a terminated estate or non-grantor trust may claim on their individual income tax returns.