Section 9-205. DEDUCTIONS FROM VALUATION OF GROSS ESTATE

 

205.1Amounts actually expended for funeral expenses may be allowed as deductions, but the deduction shall not exceed one thousand dollars ($ 1,000) unless any expenditure in excess of one thousand dollars ($ 1,000) is directed in the will of the decedent.

 

205.2No deductions shall be allowed for a monument or memorial unless the expenditure for a monument or memorial is directed in the will of the decedent.

 

205.3The amounts deductible from the gross estate as administration expenses are those expenses that are actually and necessarily incurred in the administration of the estate; that is, in the collection of assets, payment of debts, and distribution among the persons entitled.

 

205.4Expenditures not essential to the proper settlement of the estate, but incurred for the individual benefit of the heirs, legatees, or devisees, may not be taken as deductions.

 

205.5Administration expenses include executor's or administrator's commissions and attorney's fees. Commissions and attorney's fees may be allowed if approved by the Probate Court or at the discretion of the Deputy Chief Financial Officer.

 

205.6The allowable deduction for District real estate taxes for the fiscal year in which the decedent died is the pro rata portion of the total yearly tax based on the number of days the decedent lived during that fiscal year compared to three hundred sixty-five (365), less any real estate tax paid prior to death.

 

205.7Taxes unpaid at time of decedent's death upon income received during the decedent's lifetime are deductible, including interest accrued on the income at time of death. Taxes upon income received after death are not deductible.

 

205.8No deduction shall be allowed for hospital expenses, doctors and nurses bills, and any other expenses incurred, if those expenses were paid by decedent prior to his or her death.

 

205.9Funeral, administration, and other expenses and debts of the decedent are not proper deductions from the value of jointly held real estate or personal property passing by right of survivorship or from any other property received by a beneficiary (such as a U.S. Civil Service Retirement Fund) which may not be attached for debts of the decedent. Exceptions to this rule are encumbrances on District real estate and taxes on District real estate computed to the date of decedent's death, and liens on personal property having a taxable situs in the District.

 

205.10There shall be allowed as a deduction from the gross estate that proportionate part of the total federal estate tax determined by the use of the following fraction:

 

(a) The NUMERATOR shall be the total net value of all transfers of property or portions of property which are subject to District inheritance tax; Provided, that the net value of any transfer so included shall not exceed the net amount at which that transfer is valued for federal estate tax purposes; and

 

(b) The DENOMINATOR shall be the total net value of the estate subject to federal estate tax, including the value of insurance benefits subject to the federal estate tax.

 

205.11If the estate of a resident or non-resident decedent is comprised in part of property which has no taxable situs in the District for inheritance tax purposes, there shall be allowed as a deduction only that portion of the debts of the decedent for which the property having a taxable situs in the District is properly chargeable either through direct allocation or apportionment.

 

source

Commissioners' Order 299-637/12, effective June 14, 1944, 16 DCRR § 405.