What type of expenses are deductible by the executor from the estate?

Question

What type of expenses are deductible by the executor from the estate?

Answer

Decedent's debts and most reasonable expenses incurred in the administration of the estate are deductable....Typical expenses include: Probate fees, Funeral expenses, Legal fees, Accounting fees, Appraisal costs, Executor or Trustee commissions, expenses to maintain/preserve real estate prior ot sale, etc.. Real estate commissions may also be deductable depending on the language of the Will.

You may have a choice to deduct expenses on the estate or income tax return...

Answer

I agree with Jon. The choice of where some of these deductions should be taken, estate/inheritance return or estate income tax return, depends upon a variety of factors, such as tax rate comparison, size of estate and its income, how it may impact the heirs, etc. A good estate attorney or accountant should be able to make these comparisons and advise the Executor.