35 Miss. Code. R. 3-10-01-114 - Deductions for Fiduciaries

A standard deduction of $1700 is allowed to fiduciaries in lieu of itemized fiduciary expense. In addition to the deductions authorized for individuals, the following will be allowed:

1. Income which is currently paid or credited to a beneficiary by a fiduciary is deductible on the fiduciary's return. This deduction will be disallowed if the beneficiary does not report this income, if so required.

2.

a. Reasonable amounts paid or incurred by a fiduciary on account of administration, including fiduciaries' fees and expenses of litigation, are deductible, even though the estate or trust might not be engaged in a trade or business, unless the expenses were for the production or collection of tax-exempt income or were claimed as a deductible administration expense or loss on an estate tax return for Mississippi estate tax purposes.

b. Amounts deductible as administration expenses or losses for estate tax purposes are not deductible by the estate for income tax purposes unless the estate files a statement (in duplicate) to the effect that the items have not been allowed as deductions for estate tax purposes and that all rights to deduct them for such purposes are waived.

3. Estate Tax Deduction. An estate may be entitled to claim the estate tax deduction if the estate must include in gross income for any tax year an amount of income in respect to a decedent. The estate tax deduction is computed based on the Mississippi estate tax attributable to the net value of all the items included in the estate that represent income in respect of the decedent, less adjustment for distribution of this income to beneficiaries.

Notes

35 Miss. Code. R. 3-10-01-114