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Do normal administration costs incurred by the executor of a deceased estate form part of the cost base of the estate's assets pursuant to subsection 110-25(6) of the Income Tax Assessment Act 1997 (ITAA 1997)?

No, as this expenditure is not related to or associated with the cost base of assets devolved to the estate it cannot form part of the cost base of the estate's assets under subsection 110-25(6) of the ITAA 1997.

The taxpayer is the executor of a deceased estate. In this capacity they incurred normal administration expenses in carrying out duties such as lodging tax returns, financial statements, paying land taxes, rates etc.

As these administrative duties the executor of the deceased estate were not related to the assets devolved to the estate, the expenditure incurred does not fall for consideration under subsection 110-25(6) of the ITAA 1997.