The executor of the Globe Estate has reported a $10 million gross estate for the entity,and a taxable estate that exceeds the exemption equivalent by $10,000.The estate incurred a $50,000 sales commission in disposing of the decedent's assets.There was no exempt income recognized by Globe this year.The executor can claim a $10,000 deduction for the commission against the taxable estate,thereby eliminating the estate tax liability.The remaining $40,000 can be deducted on the Form 1041 for the year of the expenditure.

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The executor can deduct the $10,000 commission on the estate tax return to reduce the taxable estate to the exemption equivalent, thereby eliminating the estate tax liability. The remaining $40,000 of the commission can be deducted on the estate's income tax return (Form 1041) for the year in which it was incurred.

The Executor of the Globe Estate Has Reported a $10