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Estate
The meaning of this word in the income tax law is much narrower than its general meaning, which, broadly speaking, is an interest in property. For federal tax purposes, it has two specific meanings. The gross estate of a decedent consists of assets, both probate and nonprobate, of the decedent for estate tax purposes. Taxable estate is the gross estate less deductions and exemptions. In its most widely used sense, for income tax purposes, an estate is a taxpayer. It is the executorship or administation of a decedent's estate, subject to a court having probate jurisdiction by a fiduciary, and is treated as a separate taxpayer. For income tax purposes, although clearly distinguishable, an estate is generally subject to the same Code provisions in determining taxable income as a trust. Each is allowed deductions for distributions to beneficiaries, such deductions representing gross income in the hands of the beneficiaries. Income accumulated that is neither distributed or distributable during the taxable year is taxable to the estate, after offsetting against it all allowable deductions.