In its first tax year, the Vasquez Estate generated $50,000 of taxable interest income and $30,000 of tax-exempt interest income. It paid $8,000 in fees to the executor. The estate is subject to a 40% marginal estate tax rate and a 37% marginal income tax rate. How much should the executor assign as an estate tax deduction for the payment of the fees? Here, the deduction is valuable on the estate tax return, where the marginal tax rate is higher. So the fees fully assigned to the Form 706.