Accounting

What Deductions Are Allowed for the New Jersey Estate Tax

 New Jersey's estate tax laws are based upon the federal estate tax laws in effect as of December 31, 2001. This means that, for New Jersey estate tax purposes, the same deductions allowed on the federal estate tax return as of December 31, 2001 are deductible on the New Jersey Estate Tax Return.

One caveat on this: Not all deductions allowed on the New Jersey estate tax return are allowed on the New Jersey inheritance tax return.
Specifically, the following is a list of some of the more common deductions allowed on the New Jersey estate tax return:
1) funeral expenses - the funeral home, headstone and engraving, the funeral repast, flowers, thank you notes;
2) legal fees in connection with estate administration
3) accounting fees for preparation of estate tax returns
4) Surrogate Court costs
5) executor's commissions
6) administrator's bond
7) bills outstanding as of the date of death including balances on a credit line or credit card
8) real estate appraisal fees
9) any outstanding income tax liabilities
10) real estate closing costs if the Will directs the house or other real property to be sold
A deduction is allowed for assets passing to the surviving spouse and for assets passing to charities as well.
Please note that this list is not all-inclusive. There may be circumstances that warrant claiming deductions for other items not listed here.