D.C. Mun. Regs. tit. 9, r. 9-205
Amounts actually expended for funeral expenses may be allowed as deductions, but the deduction shall not exceed one thousand dollars ($ 1,000) unless any expenditure in excess of one thousand dollars ($ 1,000) is directed in the will of the decedent.
No deductions shall be allowed for a monument or memorial unless the expenditure for a monument or memorial is directed in the will of the decedent.
The amounts deductible from the gross estate as administration expenses are those expenses that are actually and necessarily incurred in the administration of the estate; that is, in the collection of assets, payment of debts, and distribution among the persons entitled.
Expenditures not essential to the proper settlement of the estate, but incurred for the individual benefit of the heirs, legatees, or devisees, may not be taken as deductions.
Administration expenses include executor's or administrator's commissions and attorney's fees. Commissions and attorney's fees may be allowed if approved by the Probate Court or at the discretion of the Deputy Chief Financial Officer.
The allowable deduction for District real estate taxes for the fiscal year in which the decedent died is the pro rata portion of the total yearly tax based on the number of days the decedent lived during that fiscal year compared to three hundred sixty-five (365), less any real estate tax paid prior to death.
Taxes unpaid at time of decedent's death upon income received during the decedent's lifetime are deductible, including interest accrued on the income at time of death. Taxes upon income received after death are not deductible.
No deduction shall be allowed for hospital expenses, doctors and nurses bills, and any other expenses incurred, if those expenses were paid by decedent prior to his or her death.
Funeral, administration, and other expenses and debts of the decedent are not proper deductions from the value of jointly held real estate or personal property passing by right of survivorship or from any other property received by a beneficiary (such as a U.S. Civil Service Retirement Fund) which may not be attached for debts of the decedent. Exceptions to this rule are encumbrances on District real estate and taxes on District real estate computed to the date of decedent's death, and liens on personal property having a taxable situs in the District.
There shall be allowed as a deduction from the gross estate that proportionate part of the total federal estate tax determined by the use of the following fraction:
If the estate of a resident or non-resident decedent is comprised in part of property which has no taxable situs in the District for inheritance tax purposes, there shall be allowed as a deduction only that portion of the debts of the decedent for which the property having a taxable situs in the District is properly chargeable either through direct allocation or apportionment.
D.C. Mun. Regs. tit. 9, r. 9-205