<table><tr><th>From:</th><th>jeffrey E. &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Friday, February 16, 2018 4:57 PM</td></tr><tr><td>To:</td><td>Melanie Spinella</td></tr></table>

Certain Trust and Estate Expenses—Fully Deduct=ble or Not?

New guidance has been issued by the Internal Revenue Service (IRS)=addressing costs incurred by estates and trusts. The recent regula=ion clarifies which expenses are fully deductible and which expenses a=e limited based on income levels.

The IRS' criteria for a fully deductible expense is any expense =hat is both incurred in connection with the administration of the estate or trust and incurred due to the property being held in such estate or trust. Alternatively, expenses are limited if they would commonly be incurred if the same property were instead held by an individual. The limitation is 2% of the trust's or estate's adjusted gross =ncome (AGI), meaning the sum of these certain expenses can only be deducted after subtracting 2% of the trust's or estate's AGI.

The following expenses are fully deductible:

• Tax preparation fees for all estate returns, generation-skipping transfer gift returns, fiduciary income tax returns, and the decedent =99s final individual tax return

• Court costs and appraisal fees for determining value of property at dec=dent's death

• Investment advisory fees beyond the amount normally charged to an indiv=dual investor

• Trustee fees

=C2 please note

The information contained in this communic=tion is confidential, may be attorney-client privileged, may constit=te inside information, and is intended only for the use of the addresser. It is the property of :WE Unauthorized use, disclosure or copying =f this communication or any part thereof is strictly prohibited and =ay be unlawful. If you have received this communication in error, pleas= notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and<=r>destroy this communication and all copies thereof, including all atta=hments. copyright -all rights reserved

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