The Philmore Estate is subject to a 40% Federal estate tax rate and a 45% Federal and state income tax rate.Generally,an administrative expense should be claimed on the estate's income tax return.

Question

Quizplus · Accepted Answer

Administrative expenses incurred in administering the estate can be claimed as deductions on the estate's income tax return. However, they will not reduce the estate tax liability, which is subject to a separate set of rules and rates. The given scenario only mentions the estate tax rate and the income tax rate, and thus it is safe to assume that administrative expenses can be claimed on the estate's income tax return.

The Philmore Estate Is Subject to a 40% Federal Estate