Not an IRS source, Kiplinger in June 2023 disagreed and says funeral expenses paid by the estate are deductible:
https://www.kiplinger.com/personal-fina ... ed-to-know
Many other sources agree with Kiplinger.
However, in Pub 559 the IRS says funeral expenses are not deductible but does not mention burial expenses. I would have to believe a burial or cremation is indeed necessary for the estate. Here is a snip from Pub 559 p29:
Funeral and Medical Expenses
No deduction can be taken for funeral expenses or medical and dental expenses on the estate's Form 1041.
Funeral expenses. Funeral expenses paid by the estate
aren't deductible in figuring the estate's taxable income on
Form 1041. They are deductible only for determining the
taxable estate for federal estate tax purposes on Form
706.
But it doesn't exclude burial or cremation expenses. And it's puzzling to me why many financial columnists disagree with the Pub 559, and claim even funeral expenses can be deducted on the estate 1041. Am I overlooking something? Was the law changed recently?
https://www.kiplinger.com/personal-fina ... ed-to-know
Many other sources agree with Kiplinger.
However, in Pub 559 the IRS says funeral expenses are not deductible but does not mention burial expenses. I would have to believe a burial or cremation is indeed necessary for the estate. Here is a snip from Pub 559 p29:
Funeral and Medical Expenses
No deduction can be taken for funeral expenses or medical and dental expenses on the estate's Form 1041.
Funeral expenses. Funeral expenses paid by the estate
aren't deductible in figuring the estate's taxable income on
Form 1041. They are deductible only for determining the
taxable estate for federal estate tax purposes on Form
706.
But it doesn't exclude burial or cremation expenses. And it's puzzling to me why many financial columnists disagree with the Pub 559, and claim even funeral expenses can be deducted on the estate 1041. Am I overlooking something? Was the law changed recently?
Statistics: Posted by SpideyIndexer — Tue Sep 03, 2024 8:18 pm