[Mika]

Please help and correct me if I am wrong. Thanks~~!!

Ninja Questions #1778

Which of the following is deductible from a decedent’s gross estate?

i) Expenses of administering and settling the estate

ii) State inheritance or estate tax

A. I only

B. II only

C. Both I and II

D. Neither I nor II

Answer: C Both I and II

IRC Section 2053 details the deductions allowed against a decedent’s gross estate. Administrative expenses and state estate taxes are specifically allowed.

________________________________

However, according to IRC Section 2053 (c) (1) (B) Certain taxes

Any income taxes on income received after the death of the decedent, or property taxes not accrued before his death, or any estate, succession, legacy, or inheritance taxes, shall not be deductible under this section.

So, should the correct answer is (a) Expenses of administering and settling the estate since State inheritance or estate taxes paid qualify as tax credits, and not as deductions?

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[Mika]

Jeff, is Ninja MCQ give me the wrong answer or I overlook something?

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[CPA soon]

Taxes before death and state death taxes get deducted I believe. Make sure you are able to distinguish Estate Incomes Tax Vs. Estate Tax. Two different things.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Author]

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