Advance payments after death are estate liabilities

Advance income tax payments due after the death of the testator are deductible as an estate liability.

The advance payment of income tax for a calendar quarter that does not begin until after the testator's death can be deducted by the heir as an estate liability. According to a ruling by the Münster Fiscal Court, deductible estate liabilities include not only tax liabilities already incurred by the decedent, but also those that the decedent created by realizing tax facts. Because the decedent's income tax only arises at the end of the year of death and is undoubtedly deductible, nothing else can apply to advance payments than to final payments.