Deductions Depreciation, Depletion, and Amortization A trust or decedent's estate is allowed a deduction for depreciation, depletion, and amortization only to the extent the deductions are not apportioned to the beneficiaries. An estate or trust is not allowed to make an election under section 179 to expense certain tangible property. If the deduction is not related to a specific business or activity, then report it on line 15a. For a decedent's estate, the depreciation deduction is apportioned between the estate and the heirs, legatees, and devisees on the basis of the estate's income allocable to each. If the trustee is required to maintain a reserve, the deduction is first allocated to the trust, up to the amount of the reserve.
Any excess is allocated among the beneficiaries in the same manner as the trust's accounting income.
For mineral or timber property held by a decedent's estate, the depletion deduction is apportioned between the estate and the heirs, legatees, and devisees on the basis of the estate's income from such property allocable to each. If the trustee is required to maintain a reserve, the deduction is first allocated to the trust, up to the amount of the reserve. Any excess is allocated among the beneficiaries in the same manner as the trust's accounting income. The deduction for amortization is apportioned between an estate or trust and its beneficiaries under the same principles for apportioning the deductions for depreciation and depletion. The deduction for the amortization of reforestation expenditures under section 194 is allowed only to an estate.