Where to Deduct Expenses for the Executor of an Estate on a Federal Tax Return

by Angela M. Wheeland

    The executor of an estate is responsible for resolving a deceased person’s estate. Executors are entitled to collect a fee for the service; the amount varies by state. When payment is made for the executor’s services, the estate is granted a tax deduction, which can reduce tax owed on the estate. By using Form 706, the U.S. Estate and Generation-Skipping Transfer Tax Return, you can write off any expense incurred using one of several schedules included within the lengthy tax return.

    Step 1

    Download Form 706 from the Internal Revenue Service website. Form 706 contains all of the schedules and forms you need to complete the estate's return and deduct expenses for the executor of the estate.

    Step 2

    Enter the administrative expenses incurred for the executor, accountant, attorney and other miscellaneous expenses in the "Administration Expenses" section on Schedule J, "Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims."

    Step 3

    Add up the expenses and enter the total on the bottom of Schedule J. Transfer this amount to the line labeled “Schedule J” in Part 5, the Recapitulation section of the form.

    Tip

    • If expenses were incurred to administer property not subject to taxes, list the expenses in Schedule L, "Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims." Property not subject to claims can include homestead property, life estates and property held by joint tenancy. These expenses are not common.

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    About the Author

    Angela M. Wheeland specializes in topics related to taxation, technology, gaming and criminal law. She has contributed to several websites and serves as the lead content editor for a construction-related website. Wheeland holds an Associate of Arts in accounting and criminal justice. She has owned and operated her own income tax-preparation business since 2006.

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