Property maintenance/management expensesĬarrying costs of assets - These are expenses that the estate may pay to maintain the real and tangible property owned by your deceased loved one. These are considered to be personal expenses of the family members and attendees, and funeral expenses are not deductible on personal income tax returns. Travel expenses for members of the family to attend the funeral are not deductible as funeral expenses. The cost of a funeral meal is usually allowed. Memorial expenses - Expenditures by the estate for masses or other religious observances are generally allowed as deductions. Expenses for the purchase and erection of a monument, gravestone, or marker on the decedent’s burial lot or final resting place are also deductible. The cost of transporting the body for a funeral is a funeral expense, and so is the cost of transportation of the person accompanying the body. The costs of funeral expenses, including embalming, cremation, casket, hearse, limousines, and floral costs, are deductible. The estate will lose the deduction when a funeral is paid for by a family member or another benefactor, such as the Veterans Administration. the estate’s return.įuneral expenses - An estate tax deduction is generally allowed for funeral expenses, including the cost of a burial lot and amounts that are expended for the care of the lot. When you prepare the income tax return for the deceased (or the estate itself), you should speak with a tax professional (i.e., an accountant) about which can qualify, and, if an estate income tax return is required, whether or not the deduction should be taken on the deceased’s return vs. Some of these may be tax-deductible, but not others. The deceased’s last expenses - These expenses include but are not limited to: medical expenses, debts, personal expenses (credit cards, cell phone, etc.). However, decisions like this should be evaluated by an executor and his or her counsel on a case-by-case basis. In some instances, it may be prudent for an executor to pay a timely expense that woud ordinarily be paid by the estate out-of-pocket and reimburse himself or herself from the estate (for instance, weather related expenses on the deceased’s home while awaiting court approval to formally open the estate). It is important to note that while some expenses the estate may incur will be income tax-deductible, even if some are not income tax deductible, they are likely still permissible to be paid by the estate rather than out of an executor’s pocket. Property maintenance/management expenses.The Five Expense Categories of Estate Administrationīelow we have grouped the costs and expenses of an estate administration into five categories If you are left wondering how one is able to afford this expensive and seemingly endless work, then read on for information and helpful tips. Between property maintenance, potential legal fees, and memorial expenses, the bills can add up quickly. To put it bluntly, administering an estate is expensive.
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