Question

Which of the following is a true statement?

	A.	Executor's fees paid by an estate are deductible in computing the gross estate.
	B.	Funeral expenses for the decedent paid by an esstate are deductible in computing the adjusted gross estate.
	C.	An executor can choose to deduct the decedent's funeral expenses on either the individulas income tax return or the estate tax return.
	D.	An executor cannot deduct attorney fees on the estate tax return.

Answer 1

Option. B. Funeral expenses for the decedent paid by an esstate are deductible in computing the adjusted gross estate.

Reason: A decedents gross estate is reduced by funeral expenses, admin expenses, debts and mortgages , theft losses among others. Executors fees can be deducted in on either federal tax return or estate tax return. An executor can choose to deduct the decedent's administrative expenses on either the individulas income tax return or the estate tax return.