California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 1 - Inheritance Tax
Article 6.1 - Deductions
Section 13988.6 - Nondeductible Expenses of Administration

(a) Expenses, including attorney's fees and costs of proceedings, incurred in connection with contests or litigated claims against the estate or in connection with will contests.

(b) Expenses, excluding attorney's, executor's, administrator's, and accountant's fees, for prosecuting objections to the report of the inheritance tax referee.

(c) Expenses of sale of property, such as escrow charges, real estate agent's commissions, attorney's fees, and costs of proceedings. However, such expenses are subtracted from the sales price to determine the net proceeds of sale when the sale is directed by the decedent's will, the sale is necessary to raise funds to pay taxes, debts, or costs of administration, or the property is taken in a condemnation proceeding (see Section 13988.4).

(d) Referee's fees on reappraisals for sale purposes.

(e) Expenses during administration for costs of maintenance, fire insurance costs, gardener or caretaker's salary, or repairs and additions to the property.

(f) Expenses relative to carrying on decedent's business pursuant to court order.

(g) Travel expenses of the executor or administrator or his attorney, except travel expenses of executor (one-way only) in coming to California to qualify.

(h) Extraordinary attorney's fees for services in connection with litigation or conferences in resisting a federal income tax deficiency claim.

(i) Extraordinary attorney's fees except to the extent such fees are deductible under Revenue and Taxation Code Section 13988.1 for tax work or joint tenancy.

(j) Extraordinary executor's or administrator's fees except to the extent such fees are deductible under Revenue and Taxation Code Section 13988.1 for tax work.

NOTE: Reference: Section 13988, Revenue and Taxation Code.