UHY IN THE NEWS: IRS RULES WOULD MAKE MANAGING TRUSTS, ESTATES MORE EFFICIENT

Rules surrounding managing trusts and estates are often unclear, especially when considering eligible expenses and deductions. As a result, excess deductions--meaning deductions exceeding the trust or estate's income--were often passed on to beneficiaries. With the new rules released by the IRS, deductible and non-deductible expenses are separated, with excess deductions now treated as a single miscellaneous itemized deduction.

Robert Lickwar, a Partner in UHY's Northeast Region, noted this separation of expenses will require more accounting work. However, he said the change is ultimately beneficial as it allows the deductions to be passed along to reduce the adjusted gross income of the beneficiaries.

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