The Stratford Estate incurs a $25,000 casualty loss in disposing of the decedent's real property. The deduction is claimed against the Federal estate tax unless by election it is claimed on the estate's income tax return.

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The tax code allows an estate to claim a casualty loss deduction against the Federal estate tax, but it can elect to claim this deduction on the estate's income tax return instead. This provides flexibility in managing the tax liabilities of the estate.

The Stratford Estate Incurs a $25,000 Casualty Loss in Disposing