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Compare the tax treatment of administrative expenses with that if the decedent’s debts. What are the...

Compare the tax treatment of administrative expenses with that if the decedent’s debts. What are the advantages and disadvantages of the various treatments?

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Answer #1

administrative expenses are deducted from the income and then tax is calculated.. hence deduction is available on administrative expenses.

whereas if the debt is paid on behalf of decedent then it is not considered our debt payment. it is the debt payment only as a representative and is liable for tax payment and deductions only to the extent of the decendent's estate and not our personal. advantage is that we are liable to [pay only upto the extent of decendent's estate even though tax payable is more than it.

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