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Department of the Treasury limitations for assessment (referred to Net Losses During Commissioner of Internal Revenue above) expires. Keep all vouchers and Administration Washington, DC 20224. receipts for inspection by the IRS. You may deduct only those losses from thefts, fires, storms, shipwrecks, or Schedule M—Bequests, other casualties that occurred during Attach to your request a copy of the the settlement of the estate. You may etc., to Surviving Spouse will and relevant documents, a deduct only the amount not reimbursed statement showing the distribution of (Marital Deduction) by insurance or otherwise. the estate under the decedent’s will, and a computation of the state or Describe in detail the loss sustained General foreign death tax showing any amount and the cause. If you received payable by a charitable organization. You must complete Schedule M and file insurance or other compensation for the it with the return if you claim a loss, state the amount collected. deduction on Part 5—Recapitulation, Mortgages and Liens Identify the property for which you are item 20. claiming the loss by indicating the List under “Mortgages and Liens” only particular schedule and item number obligations secured by mortgages or The marital deduction is authorized where the property is included in the other liens on property that you by section 2056 for certain property gross estate. included in the gross estate at its full interests that pass from the decedent to value or at a value that was the surviving spouse. You may claim If you elect alternate valuation, do undiminished by the amount of the the deduction only for property interests not deduct the amount by which you mortgage or lien. If the debt is that are included in the decedent’s reduced the value of an item to include enforceable against other property of gross estate (Schedules A through I). it in the gross estate. the estate not subject to the mortgage Note. The marital deduction is Do not deduct losses claimed as a or lien, or if the decedent was generally not allowed if the surviving deduction on a federal income tax personally liable for the debt, you must spouse is not a U.S. citizen. The marital return or depreciation in the value of include the full value of the property deduction is allowed for property securities or other property. subject to the mortgage or lien in the passing to such a surviving spouse in a gross estate under the appropriate Expenses Incurred in qualified domestic trust (QDOT) or if schedule and may deduct the mortgage such property is transferred or Administering Property Not or lien on the property on this schedule. irrevocably assigned to such a trust Subject to Claims before the estate tax return is filed. The However, if the decedent’s estate is You may deduct expenses incurred in executor must elect QDOT status on not liable, include in the gross estate administering property that is included the return. See the instructions that only the value of the equity of in the gross estate but that is not follow for details on the election. redemption (or the value of the property subject to claims. You may only deduct less the amount of the debt), and do these expenses if they were paid Property Interests That You not deduct any portion of the before the section 6501 period of indebtedness on this schedule. May List on Schedule M limitations for assessment expired. Generally, you may list on Schedule M Notes and other obligations secured The expenses deductible on this all property interests that pass from the by the deposit of collateral, such as schedule are usually expenses incurred decedent to the surviving spouse and stocks, bonds, etc., also should be in the administration of a trust are included in the gross estate. listed under “Mortgages and Liens.” established by the decedent before However, you should not list any death. They may also be incurred in the nondeductible terminable interests Description collection of other assets or the transfer (described below) on Schedule M or clearance of title to other property Include under the “Description” column unless you are making a QTIP election. included in the decedent’s gross estate the particular schedule and item The property for which you make this for estate tax purposes, but not number where the property subject to election must be included on Schedule included in the decedent’s probate the mortgage or lien is reported in the M. See Qualified terminable interest estate. gross estate. property, below. The expenses deductible on this Include the name and address of the For the rules on common disaster schedule are limited to those that are mortgagee, payee, or obligee, and the and survival for a limited period, see the result of settling the decedent’s date and term of the mortgage, note, or section 2056(b)(3). interest in the property or of vesting other agreement by which the debt was good title to the property in the You may list on Schedule M only established. Also include the face beneficiaries. Expenses incurred on those interests that the surviving amount, the unpaid balance, the rate of behalf of the transferees (except those spouse takes: interest, and date to which the interest described above) are not deductible. 1. As the decedent’s legatee, was paid before the decedent’s death. Examples of deductible and devisee, heir, or donee; nondeductible expenses are provided in 2. As the decedent’s surviving Schedule L—Net Losses Regulations section 20.2053-8(d). tenant by the entirety or joint tenant; List the names and addresses of the 3. As an appointee under the During Administration persons to whom each expense was decedent’s exercise of a power or as a and Expenses Incurred payable and the nature of the expense. taker in default at the decedent’s Identify the property for which the nonexercise of a power; in Administering expense was incurred by indicating the 4. As a beneficiary of insurance on schedule and item number where the the decedent’s life; Property Not Subject to property is included in the gross estate. 5. As the surviving spouse taking Claims If you do not know the exact amount of under dower or curtesy (or similar You must complete Schedule L and the expense, you may deduct an statutory interest); and file it with the return if you claim estimate, provided that the amount may 6. As a transferee of a transfer deductions on either item 18 or item 19 be verified with reasonable certainty made by the decedent at any time. of Part 5—Recapitulation. and will be paid before the period of -27- Part Instructions