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deducting losses on termination of an estate

  • 1.  deducting losses on termination of an estate

    Bronze Most Valuable Member
    Posted 03-29-2019 12:53
    Hi all
    I have Excess deduction on termination which was an itemized deduction disallowed under new law.
    I know there was pending regulation under IRS Notice 2018-61 to determine alternative treatment.
    Does anyone know the status of those regulations, and if the excess deduction can be taken???

    Gary Sanders CPA PC
    2415 Jerusalem Avenue- Suite 107
    North Bellmore, New York 11710
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  • 2.  RE: deducting losses on termination of an estate

    Posted 03-30-2019 10:48
    Complicated issue - i have seen some discussion on this point but nothing final - see follow as good to sum up issue and approach to take - best bet for 2018 return, go on extension as maybe maybe IRS finalizes regs by then.  If you have to file now i think the consensus is that they excess deductions are not deductible


    Bruce Oberfest
    Chappaqua NY

  • 3.  RE: deducting losses on termination of an estate

    Silver Most Valuable Member
    Posted 03-30-2019 16:37

    No notice is good notice no?   In plain English they left you hanging.  The Notice indicates that their position is that the misc. item. Ded. rule taints the deduction.  But.... what if all the items were items that would not be considered misc. item. ded. Like legal fees, commissions, accountings etc.   Can you take a filing position?  Deduct the items that would not have been considered misc. item. ded. to the Trust or Estate.   Disclosure?  Form 8275?  Don't claim and look for guidance and possibly amend if they change their mind?  Go on extension?   Pray?


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  • 4.  RE: deducting losses on termination of an estate

    Posted 03-30-2019 17:32

    Praying – new form of tax planning option? With this new tax law praying is going to become more popular J


    The approach you are suggesting is reasonable and probably the right theoretical answer but remember the CPA penalty provisions as technically it is not supported yet in the law or IRS releases


    Good luck


    Bruce Oberfest

    Bruce Oberfest & Associates

    287 King Street

    Chappaqua, New York 10514


    914-238-3138 (Fax)