Which of the following defines the taxable estate after making eligible deductions?

The concept of a taxable estate is crucial in the context of estate taxes, and it is defined as the value of the estate that is subject to tax after accounting for certain deductions. In this case, the correct answer highlights that the taxable estate is derived from the gross estate, with allowable deductions taken into account.

The gross estate encompasses all the property owned by the decedent at the time of death, including cash, securities, real estate, and other assets. Allowable deductions can include debts owed by the estate, administrative expenses, funeral expenses, and any bequests to charity. By subtracting these deductions from the gross estate, we arrive at the taxable estate, which is the amount that will be subject to estate taxes.

This answer is accurate because it captures the essential calculation for determining what part of the estate is taxable. The idea is that only the net value—after legitimate and allowable claims against the estate are accounted for—should be subjected to taxation, reflecting a fair treatment of the decedent's intentions and obligations.

Other options do not appropriately define the taxable estate. Total estate minus liabilities does not specifically address the categories of deductions recognized by the IRS. Total estate minus gifts only does not incorporate other essential deductions. Lastly, gross estate plus transfers