In arriving at the taxable estate, expenses incurred in administering community property are deductible only in proportion to the deceased spouse's interest in the community.

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This statement is true according to the Internal Revenue Code section 2053(a)(3). It states that "in arriving at the taxable estate, there shall be deducted amounts for expenses of administering property not required to be included in the gross estate and for family allowances, but no deduction shall be allowed in respect of any item (other than a family allowance) which is not allowable as a deduction under this chapter in computing the net estate, unless the executor establishes that such deduction is proper and was not, under all the circumstances, unreasonable." Therefore, community property expenses can only be deducted based on the deceased spouse's interest in the community property.

In Arriving at the Taxable Estate, Expenses Incurred in Administering