Furneral exps paid by parents (TP)

[AZ-Tax]

TP says that deceased adult did not have the funds to pay for the furneral exps. I have read that these exps are to be deducted on the deceased form 1041 but I was hoping someone on the board knew of an exception.

[WhiteOleander]

Actually, you can't deduct them on the 1041 or 1040. If a 706 form for "inheritance tax" is filed, they can be deducted there. Otherwise, they are not deductible.

[Burke]

That is correct. They are an expense only on the Federal Estate Tax Return, Form 706. For 2008, that was required on estates exceeding $2 million dollars.