Hello there! Today we’re going to be talking about headstones and whether or not they’re tax deductible. If you’re reading this, you may have just lost a loved one, or maybe you’re simply planning ahead for your funeral.

Regardless of your funeral situation, you’re likely wondering about the financial aspects of purchasing a headstone and whether those funeral costs can be deducted from your tax return.

So, are headstones tax deductible? Headstones are tax-deductible according to the current guidelines from the IRS as long as they come from the deceased person’s estate. All funeral expenses can be deducted from the deceased’s estate including the headstone, transporting the body to the cemetery, the burial plot, and other related funeral expenses.

So funeral and burial expenses are only deductible if paid out by the decedent’s estate not if you pay for them personally and then try to claim them as deductions on your taxes.

Individual taxpayers cannot deduct funeral expenses on their tax return since funeral expenses aren’t tax deductible for individuals only the estate of the deceased.

So don’t try and claim deductions for the headstone or funeral costs on your federal tax return. It should be deducted from the deceased estate tax (the same goes for all funeral costs).

In this article, we’ll go into more detail discussing the tax deductibility of headstones and funeral costs (and how they work on tax returns). and what you need to know to determine if your headstone and funeral expenses are eligible for a tax deduction on your tax return.

Here’s an overview of what we’ll be covering:

  • What the IRS considers a deductible expense
  • IRS guidelines and documentation required to claim a tax deduction
  • Eligible and non-eligible funeral expenses for a headstone tax deduction

By the end of this article, you should have a good understanding of whether or not your gravestone and funeral expenses are tax deductible.

But before we dive in, let me offer a word of caution. While I have a lot of information at my disposal and have been through this before, I’m not a tax expert.

So, if you have any questions or concerns, be sure to get some advice and more details from a tax advisor or financial professional.

Now, let’s get started! We’ll begin by discussing what a headstone is and what the IRS considers a deductible expense.

Tax Deductible Headstone? (What Can You Deduct On Taxes?)

To start, let’s define what tax deductibility is. Tax deductibility refers to the ability to subtract certain expenses from your taxable income (or in this case the estate), reducing the amount of taxes you owe on your tax return.

So, what do we mean when we say that headstones are tax deductible? Essentially, if you’ve incurred funeral expenses related to the purchase of a headstone, you may be able to claim deductions for those funeral expenses from the estate rather than paying taxes on that money.

However, not all funeral expenses related to a headstone are eligible for a tax deduction. The IRS has specific guidelines on what they consider a deductible expense, and we’ll be discussing those in more detail later in the article.

It’s important to note that there are different types of deductions, and the type of deduction you’re eligible for will depend on your specific circumstances. For example, if you’ve purchased a headstone for a loved one who has passed away personally you can’t claim deductions for that on your tax return.

However, if you purchase that same headstone using the estate’s money there you won’t have to pay any estate tax on that money that was used. So just where you pay the cost from can determine whether the headstone (or funeral costs) are tax deductible or not.

So, what does the IRS consider a deductible expense? To put it simply, the IRS considers a deductible expense to be one that is necessary, reasonable, and directly related to the funeral.

In the case of a headstone, this means that the funeral expenses must be necessary for the proper care of the deceased and directly related to their death.

It’s important to keep good records and documentation of all headstone expenses. This includes receipts, invoices, and any other relevant documentation. The IRS may request this information if you choose to deduct your headstone expenses on your taxes.

The IRS also requires that the headstone or funeral expenses not be eligible to be paid in some other manner (such as life insurance that pays for the funeral or related expenses or another type of death insurance that is designed to pay for the headstone).

In the next section, we’ll be discussing the eligible and non-eligible funeral expenses for a headstone tax deduction. By the end of this section, you should have a good understanding of what expenses are eligible for a tax deduction and what expenses are not.

Internal Revenue Service (IRS) Funeral Federal Tax Guidelines

Alright, now that we’ve talked about what tax deductibility is and what the IRS considers a deductible expense, let’s dive into the IRS guidelines for headstone expenses.

To start, let’s define what the IRS considers to be a headstone. According to the IRS, a headstone is any monument, marker, or memorial that is used to mark the location of a grave. This could include a variety of things as there are many alternative headstones that you can use besides stone.

However, typically a headstone will be granite or marble.

So, what do you need to know about the IRS guidelines for headstone expenses? To put it simply, the IRS requires that headstone expenses be necessary, reasonable, and directly related to the descendant or his family.

The key here is that it must be reasonable (especially in the event of an audit). So if you are making a golden statue for your loved one that likely won’t be considered a reasonable expense.

However, if you are getting a custom headstone made out of metal, glass, or alternative materials it would likely still be considered reasonable even if it is a bit more expensive of a headstone than a normal one might be.

It’s also important to note that the headstone must be permanent (and I’m not talking about if it is on a base or not). So if you purchase a specialty headstone that also doubles as a pool table that you can take to your house (cause your loved one loved playing the game) you will likely have some issue explaining that when or if you have an audit.

According to the current IRS rules you can claim deductions for the cost of taking the deceased to the cemetery, a burial plot, a headstone, and any other funeral expenses. Again as long as those expenses would be considered reasonable.

You can also get deductions for the expenses for the future care of the plot or headstone as well according to the current guidelines.

By now, you should have a good understanding of the IRS guidelines for headstone expenses (or you better hope you do come audit time). In the next section, we’ll be discussing the eligible and non-eligible expenses for headstone tax deductions.

By the end of this section, you should have a good understanding of what expenses are eligible for deductions and what expenses are not.

Eligible Funeral Expenses (That You Won’t Pay Estate Tax On)

Now that we’ve covered the IRS guidelines for headstone expenses, let’s talk about what expenses are eligible for deductions.

When it comes to headstone expenses from the estate’s money, there are a few expenses that the IRS considers to be eligible.

The first eligible expense is the cost of the headstone itself. This includes the cost of the marker, monument, or memorial that marks the location of the grave. The cost of the headstone must be necessary and reasonable (sorry no making a headstone full of a million dollar bills that you can come and claim later).

The second eligible expense is the cost of installation. This includes the cost of installing the headstone at the cemetery, as well as any related expenses, such as digging the grave or pouring the foundation.

Another eligible expense is the cost of a grave liner. A grave liner is a concrete or metal box that is placed in the ground to encase the casket.

It’s important to note that the cost of the plot is also eligible for deductions. The cost of the plot is an important expense related to the deceased, and so it can be deducted from the estate without paying taxes on it.

You can also claim a deduction any other “reasonable” funeral costs. So things like paying for the funeral home, paying for a meal after the graveside service, paying the pastor who does the funeral, purchasing a casket, etc. are all reasonable expenses that could be deducted.

However, don’t try and turn the funeral into an all-expenses paid trip to some far-off country to spread the ashes of the deceased. Most IRS won’t find that very “reasonable”.

In the next section, we’ll be discussing the non-eligible expenses for headstone deductions. By the end of this section, you should have a good understanding of what expenses are not eligible for tax deductions.

Non-Eligible Funeral Expenses

Now that we’ve covered the eligible expenses for a headstone and funeral tax deductions, let’s talk about the non-eligible expenses. While there are a few expenses that the IRS considers eligible, there are also many expenses that are not eligible for tax deductions.

The first non-eligible expense is anything that the IRS would deem unreasonable.

Are you trying to buy a $100,000 suit for your loved one to wear? That probably isn’t very reasonable.

Are you trying to buy a trip for everyone to the Bahamas to remember the deceased in a month-long party? Again, probably not very reasonable.

Ultimately all tax deductions that you choose to take should be reasonable and you shouldn’t have any issues with the IRS by deducting it.

So no funny business!

It’s important to keep in mind that any expenses that are not directly related to the headstone, funeral, burial, and proper care of the deceased are not eligible for tax deductions. Although you do get some leeway when it comes to what is and is not considered reasonable when you file your taxes you don’t want to have to deal with an audit because you tried to get cute.

If you have to deal with an audit you will need to search through all of your file folders, find the information about the funeral service, filll out every form under the sun, and will likely still get some expenses that the agent doesn’t deem “reasonable”.

So don’t try and learn that part the hard way. Just be honest and save yourself from an audit!

In conclusion, when it comes to headstone expenses, it’s important to keep track of all eligible and non-eligible expenses. By understanding the IRS guidelines and eligible and non-eligible expenses, you’ll be able to accurately track and deduct your headstone and other funeral expenses from the estate and not pay taxes on those things.

Conclusion: What Counts As Tax Deductions At A Funeral

Well, we’ve come to the end of our discussion about the tax deductibility of grave markers. I hope you now have a better understanding of the IRS guidelines and what expenses are eligible for tax deductions.

It’s important to remember that the cost of a headstone and funeral is a significant expense, and it’s only natural to want to deduct as much of that cost as possible from your taxes. However, it’s crucial to understand the IRS guidelines and what expenses are eligible for tax deductions, so that you can accurately report your expenses on your taxes.

In conclusion, if you’re considering purchasing a headstone, it’s important to keep track of all eligible expenses and to understand the IRS guidelines. By doing so, you’ll be able to accurately report your expenses on your taxes and potentially save money on your tax bill.

And remember, if you’re unsure about any aspect of the tax deductibility of headstones, it’s always best to consult a tax professional. They’ll be able to provide you with the most up-to-date and accurate information, and they can help you understand the IRS guidelines and how they apply to your specific situation.

So, that’s it for today! I hope this article has been helpful and informative. If you have any questions or if there’s anything else you’d like to know, don’t hesitate to reach out.

I’d be happy to help in any way that I can.

Joshua R
Latest posts by Joshua R (see all)