Christopher's residence was damaged by a storm during the administration of his estate. Christopher's executor paid $120,000 to repair the residence after the storm. Which of the following is a True statement?

Question

Quizplus · Accepted Answer

Casualty and theft losses are deductible for calculating the estate tax without any floor limitation. These losses must be incurred during the administration of the estate, otherwise any deduction belongs to the new owner of the property. Only casualty losses on business property is allowed for income tax purposes starting in 2018.

Christopher's Residence Was Damaged by a Storm During the Administration