Answer ID 1402 | Published 01/21/2004 09:32 AM | Updated 08/01/2024 01:28 PM
Are prepaid funeral expenses an asset of an estate or a deduction?
Essentially, they can be both an asset and a deduction. The value of the prepaid funeral should be listed on REV-1508 Schedule E - and the actual costs of the funeral services should be listed on REV-1511 Schedule H. If the funeral costs are greater than the value of the pre-payment, the estate gets the advantage of having the additional expense as a deduction. If the funeral costs are less than the value of the pre-payment, the amount refunded by the funeral home is subject to tax. If the amounts are equal, they cancel each other out.
Was this answer helpful?
Rate answer 1 of 3Rate answer 2 of 3Rate answer 3 of 3
Please tell us how we can make this answer more useful.
Answers others found helpful
- Can I deduct all medical, incidental and residence expenses paid after death on the inheritance tax return?
- Are funeral and related expenses paid after death deductible on the inheritance tax return?
- Should a funeral director remit Use Tax on every item for which the director does not pay Sales Tax, regardless of whether the item is used during a funeral service?
- On what items should a funeral director remit Use Tax to the Department rather than collect Sales Tax from the consumer(s)?
- Is there a time limit for something to be considered used “in conjunction with a funeral service?”
Email this page
