State Inheritance Tax deductable?

[ToledoEd]

Have a client who inherited money from Aunt in NJ. 2/3rds of what she got was from an IRA and is taxable. And then she had to pay NJ inheritance tax on the amount she received. Is the state Inheritance tax deductable? I am thinking that it should be at least partly dedcutable since what she received was taxable income.

Thanks for any help or pointers.

[Bees Knees]

The only estate taxes deductible for federal income tax purposes is the federal estate tax on income in respect of a decedent, which is deductible as an itemized deduction not subject to the 2% AGI limitation. State inheritance tax is only deductible in computing the federal estate tax. It is not deductible in computing the federal income tax.

[ToledoEd]

I was afraid that was right, she got 14k from IRA and had to pay 11k for inheritance tax. She has more coming from the estate, but after Real Estate sells sometime in the future.