IRS Logo
Print - Click this link to Print this page

MISC Estate & Abusive Tax Avoidance Transactions

Question: How do I deduct the administration expenses of my father's estate?


You can deduct the expenses incurred by an estate for its administration either as an expense against the estate and generation-skipping transfer (GST) tax or the annual income tax against the estate.

  • You may deduct the expense from the gross estate in figuring the federal estate tax on Form 706 (.pdf), United States Estate (and Generation-Skipping Transfer) Tax Return, or
  • You may deduct the expense from the estate's gross income in figuring the estate's income tax on Form 1041 (.pdf), U.S. Income Tax Return for Estates and Trusts.
  • However, you cannot claim these expenses for both estate tax and income tax purposes.
  • In most cases, these rules also apply to expenses incurred in the sale of property by the estate. For more information, refer to Publication 559, Survivors, Executors, and Administrators, designed to help those in charge of the property (estate) of an individual who has died.

In general, administration expenses deductible in figuring the estate tax include:

  • Fees paid to the fiduciary for administering the estate;
  • Attorney, accountant and return preparer fees;
  • Expenses incurred for the management, conservation or maintenance of property;
  • Expenses in connection with the determination, collection or refund of the estate's tax liability.

Category: Other (Alternative Minimum Tax, Estates, Trusts, Tax Shelters, State Tax Inquiries)
Subcategory: MISC Estate & Abusive Tax Avoidance Transactions

Please provide your feedback.

1. Was it easy to find your information within the above Frequently Asked Question?

2. How satisfied are you with the information provided within the above Frequently Asked Question?

3. If you still need help from the IRS, what would your next step be?

The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
1111 Constitution Avenue NW
Washington, DC 20224