Estate Tax Deduction for Funeral Expenses

Estate Tax Deduction for Funeral Expenses refers to the allowance that permits a decedent’s estate to deduct certain funeral-related expenses from the gross estate value when calculating the estate tax owed.

This deduction includes costs associated with the burial or cremation of the deceased, as well as fees for related services such as transportation of the body and memorial services. By deducting these expenses, the estate can reduce its taxable value, ultimately lowering the estate tax liability.

For example, if an estate has a gross value of $1 million and incurs $10,000 in qualified funeral expenses, the taxable estate would be reduced to $990,000, potentially decreasing the amount of estate tax due.