§ 54:34-5 — Deductions to ascertain market value

Taxes imposed by chapters 33 to 36 of this title (s. 54:33-1 et seq.) shall be computed upon the clear market value of the property transferred. In determining the clear market value of the property the following deductions and no others shall be allowed: Debts of decedent; exception. a. Debts of the decedent owing at the date of death, except that debts of a resident decedent owing for or secured by property outside this state shall not be allowed unless: (1) The property for which the debt is owing or for which it is secured is subject to the tax imposed by said chapters 33 to 36; or, (2) The foreign debt exceeds the value of the property securing it or for which it was contracted, when the excess may be deducted; Funeral and last illness expenses. b. A reasonable sum for funeral expenses and last illness. Administration expenses; fees of executors and attorneys. c. The ordinary expenses of administration, including the ordinary fees allowed executors and administrators and the ordinary fees of their attorneys. Proportion of state, county and local taxes. d. Such proportion of the state, county and municipal taxes upon the property for the current fiscal year as the elapsed portion of the said year bears to the full calendar year. Transfer taxes of other states or United States. e. Transfer taxes paid or payable to other states or territories or the District of Columbia or foreign countries on any property the transfer of which is taxable hereunder, but the amount due or paid the government of the United States as a federal estate tax shall not be considered as an expense of administration and shall not be allowed as a deduction.