Another issue here is whether the estate has income from which to apply any otherwise legitimate deduction(s).
If the estate has no income and this return is not the final return, the deductions for expenses would simply be lost.
Yet another issue is whether the estate can deduct the aforementioned expenses in the first instance. In order to do so, the expenses must be paid or incurred in connection with the administration of the estate that would not have been incurred if the property were not held in the estate. In other words, if a hypothetical individual could not deduct the expenses, then neither can the estate.
See Treas. Reg. §1.67-4
