Does the estate deduct executor fees?

Question

As things stand, I am serving as executor and may receive a fee for the work in addition to my inheritance. As things stand, I want to keep the compensation, reimbursements, and beneficiary distribution clearly separated for tax purposes. More than one taxpayer may be involved, which could include the deceased person, the estate or trust, and a beneficiary.

Soradin · Accepted Answer

Allowable administration expenses may be deductible on an estate tax or fiduciary income tax return depending on the circumstances. The estate may be able to deduct allowable administration expenses, subject to applicable rules and elections. When preparing the return, federal and state systems are separate, so the executor or beneficiary should check the current rules that apply in ND and any other state connected to the estate.

Does the estate deduct executor fees?

Soradin

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