Got a client who received an inheritance and must pay Indiana Inheritance Tax (tax was not paid from the estate) - in this case the tax is $17k. Looking for a method to deduct these taxes paid on the Federal return. In the IRS instructions of Schedule A for Line 28 Other Misc. Deductions there is a mention of deductability for Federal estate tax paid in respect of a decedent. Not the same as Indiana Inheritance Tax but close enough that it makes me wonder if any of you Indiana preparers have encountered this situtation and if so were you able to successfully take a deduction. Thanks.