TSEM7690 - Deceased persons: interests in residue: practical and computational aspects - excess expenses
TSEM7678 explains how to compute residuary income. »Ê¹ÚÌåÓýapp expenses mentioned are deducted in the year in which they are paid.
Sometimes the allowable expenses in a particular year may exceed the income for that year. A statutory provision was introduced at, ITTOIA/S666 subsections (2) and (6) for non-corporate beneficiaries, and CTA 2009/S949 subsections (2) and (6) for corporate beneficiaries. This provides that excess expenses are carried forward for the purposes of computing residuary income for all tax purposes.
»Ê¹ÚÌåÓýapp excess expenses cannot, for any year, be set off against other income of the beneficiary.
TSEM7900 + provides guidance on personal representatives expenses.