Tax Law

LexisNexis Tax Advisor - Federal Topical: Bona Fide Estate Tax Deduction Regulations

Treasury Regulations issued in October 2009 limit estate tax deductions to "bona fide" claims and expenses only. Deductions are therefore not valid if they are "essentially donative in character." There are several objective markers defining what validly constitutes a "bona fide" claim.  Moreover, the claim amount allowed is also limited to the total sum actually paid. This means that the deduction must account for post-death events. There is new attention also to details about filing for a protective refund in the event a deduction may not be claimed or if the Service denies a deduction claim. 


Exclusively from LexisNexis: Tax-Advisor - Federal Topical, a comprehensive 480-chapter tax encyclopedia with expert practitioner analysis of federal tax law, this easy-to-use topical reporter provides practical tips, hypothetical examples, hyperlinks to other analytical content and primary law, drafting checklists and a sophisticated index to pinpoint what you need quickly.


LEXIS users can view more on this and additional content: LexisNexis Tax Advisor - Federal Topical § 3C:1.03

Bona Fide Estate Tax Deduction Claims.pdf