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VII. Whether the Estate Is Entitled To Deduct Administration
Expenses in Excess of Those Allowed
Petitioner contends that the executor’s fee, appraisal fees,
legal fees, and interest accrued on the Oklahoma death tax and
the Federal estate and gift tax liabilities, incurred after
filing the estate tax return and in excess of the amounts already
allowed, are deductible from decedent’s gross estate.
Respondent contends that petitioner has not presented any
documentation to substantiate the estate’s expenses but
acknowledges that petitioner may submit the appropriate forms,
along with supporting documentation, to respondent for a
determination of reasonableness of the amounts claimed.
Alternatively, respondent asserts that petitioner may request
additional administration expense deductions in the Rule 155
proceeding, or we may determine the allowable administration
expense deductions in a Rule 156 proceeding.
Section 2053(a)(2) provides that the value of the taxable
estate shall be determined by deducting from the value of the
gross estate such amounts for administration expenses as are
allowable by the laws of the jurisdiction under which the estate
is being administered. Administration expenses include
executor’s commissions; attorney’s fees, including those fees
associated with contesting an asserted deficiency; and
miscellaneous expenses such as appraiser’s fees, accountant’s
fees, and court costs. Sec. 20.2053-3, Estate Tax Regs. In
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Last modified: November 10, 2007