Michael Jackson’s Funeral as an Estate Tax Deduction?

The media coverage of Michael Jackson’s extravagant public memorial left some asking whether the expense of it all is deductible for estate tax purposes. 

Under applicable regulations, only the portion of funeral expenses paid for with estate property subject to claims against the estate can be deducted.  Also, the deduction is for reasonable expenditures, with reasonable varying from case to case.

The costs of Jackson’s private funeral, transportation to place of burial, and the actual place of burial are likely deductible; however, it is questionable if the amounts spent on the public memorial are deductible because it really was not part of his funeral.

Special thanks to David Shulman for providing this information.  See David Shulman, Are Michael Jackson’s Funeral Costs Deductible for Estate Tax Purposes?, July 8, 2009.