Question

The stratford estate incurs a $25,000 casualty loss in disposing of the decedent's real property. the deduction is claimed against the federal estate tax unless by election it is claimed on the estate's income tax return.

A. true
B. false

Answer 1

The statement is true. The Stratford Estate can incur a $25,000 casualty loss in disposing of the decedent's real property and claim the deduction against the federal estate tax, but it also has the option to claim the deduction on the estate's income tax return.

option a is the correct

Step-by-step explanation:

The statement is True.

When the Stratford Estate incurs a casualty loss of $25,000 in disposing of the decedent's real property, the deduction can be claimed against the federal estate tax. However, the estate has the option to elect to claim the deduction on the estate's income tax return.

This means that instead of deducting the loss from the estate tax, the estate can choose to deduct it from the income tax liabilities of the estate.