When a person cannot handle his or her financial affairs because of physical or mental impairment and did not make arrangements (e.g., a durable power of attorney or trust) prior to impairment, a court may appoint a guardian or conservator. The guardian or conservator may have control over the person’s finances and/or personal affairs (depending on state law and the extent of impairment). For tax purposes, these fees can be deductible only to the extent they can relate to deductible activities (there are no cases or IRS rulings on point).
Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.