Discussion:Deductible funeral expenses on form 706

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

(Difference between revisions)
Jump to: navigation, search
Revision as of 21:26, 15 October 2007
Theresa d (Talk | contribs)
(no. Trust agree)
← Previous diff		 Revision as of 22:04, 15 October 2007
Bengoshi (Talk | contribs)
(An interesting c)
Next diff →
Line 7: Line 7:
{{ForumReplyPost|UserID=Theresa d|Date=15 October 2007|Text=no. Trust agreement specifies that trustee has the power to pay all expenses of the trust. the trust agreement doesn't specify what constitutes funeral expenses. }} {{ForumReplyPost|UserID=Theresa d|Date=15 October 2007|Text=no. Trust agreement specifies that trustee has the power to pay all expenses of the trust. the trust agreement doesn't specify what constitutes funeral expenses. }}
 +
 +{{ForumReplyPost|UserID=Bengoshi|Date=15 October 2007|Text=An interesting case to consider:
 +
 +http://www.ustaxcourt.gov/InOpHistoric/Davenport.TCM.WPD.pdf
 +
 +Assuming state law permits reasonable funeral expenses as a charge against the estate, the personal rep/successor trustee should be prepared to demonstrate the reasonableness and necessity of the luncheon/flowers, etc. Does PR have an itemized bill showing what costs were incurred in the luncheon? Was the luncheon immediately after the funeral w/ the same guests attending both events? Was the luncheon held in the same complex as the funeral? What events if any transpired at the luncheon (e.g., did anyone give speeches there remembering the deceased?). I believe the main thrust of Davenport was that the court needed evidence to assess reasonableness. JMHO
 +
 +}}

Revision as of 22:04, 15 October 2007

Discussion Forum Index --> Advanced Tax Questions --> Deductible funeral expenses on form 706
Discussion Forum Index --> Tax Questions --> Deductible funeral expenses on form 706

Theresa d (talk|edits) said:

15 October 2007
I'm preparing a estate tax return form 706. the family of the deceased held a luncheon after the funeral. Is this a deductible expense? What about the flowers purchased for the wake? i'm thinking it is not deductible but just want to check. thanks.

Kevinh5 (talk|edits) said:

15 October 2007
were these required by his will or trust?

Theresa d (talk|edits) said:

15 October 2007
no. Trust agreement specifies that trustee has the power to pay all expenses of the trust. the trust agreement doesn't specify what constitutes funeral expenses.

Bengoshi (talk|edits) said:

15 October 2007
An interesting case to consider:

http://www.ustaxcourt.gov/InOpHistoric/Davenport.TCM.WPD.pdf

Assuming state law permits reasonable funeral expenses as a charge against the estate, the personal rep/successor trustee should be prepared to demonstrate the reasonableness and necessity of the luncheon/flowers, etc. Does PR have an itemized bill showing what costs were incurred in the luncheon? Was the luncheon immediately after the funeral w/ the same guests attending both events? Was the luncheon held in the same complex as the funeral? What events if any transpired at the luncheon (e.g., did anyone give speeches there remembering the deceased?). I believe the main thrust of Davenport was that the court needed evidence to assess reasonableness. JMHO

Retrieved from "http://taxalmanac.org/index.php/Discussion:Deductible_funeral_expenses_on_form_706"