Should an executor keep every receipt?

Question

The situation is that the estate is paying funeral costs, legal and accounting fees, probate charges, travel, and other administration expenses. The part I am trying to sort out is which expenses are deductible, on which return, and which are simply personal costs. What I need to account for is that I want to know what should be checked before the return is finalized.

Soradin · Accepted Answer

Detailed records support tax returns, court accountings, beneficiary explanations, and reimbursement decisions. The reporting result is sensitive to beneficiary status, ownership, timing, basis, and whether the amount is principal or income. When preparing the return, administration expenses after death can be treated differently for estate tax, estate income tax, and beneficiary purposes. Save the original records used to determine the tax treatment, then have a tax professional compare the records with the taxpayer, form, basis, and filing deadline.

Should an executor keep every receipt?

Soradin

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