Form 706 (Draft) - United States Estate (And Generation-Skipping Transfer) Tax Return - 2016 Page 11
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55Line 1. Alternate Valuation
sale, exchange, or other disposition,
Gross estate tax minus (the
whichever occurs first. However, you
sum of the state death taxes
Value of
See the example showing the
may change the date of death value to
and unified credit)
x
included
use of Schedule B where the
account for any change in value that is
gift
TIP
Value of gross estate minus
alternate valuation is adopted.
not due to a “mere lapse of time” on the
(the sum of the deductions for
date of its distribution, sale, exchange,
charitable, public, and similar
Unless you elect at the time the return is
or other disposition.
gifts and bequests and marital
filed to adopt alternate valuation as
deduction)
authorized by section 2032, value all
The property included in the alternate
DRAFT AS OF
property included in the gross estate as
valuation and valued as of 6 months
of the date of the decedent's death.
after the date of the decedent's death,
When taking the credit for pre-1977
Alternate valuation cannot be applied to
or as of some intermediate date (as
federal gift taxes:
only a part of the property.
described above) is the property
Include the credit in the amount on
included in the gross estate on the date
You may elect special-use valuation
line 15 and
of the decedent's death. Therefore, you
(line 2) in addition to alternate valuation.
June 16, 2016
Identify and enter the amount of the
must first determine what property was
You may not elect alternate valuation
credit you are taking on the dotted line
part of the gross estate at the
unless the election will decrease both
to the left of the entry space for line 15
decedent's death.
the value of the gross estate and the
on page 1 of Form 706 with a notation,
Interest. Interest accrued to the date of
sum (reduced by allowable credits) of
“section 2012 credit.”
the decedent's death on bonds, notes,
the estate and GST taxes payable by
For more information, see the
and other interest-bearing obligations is
reason of the decedent's death for the
regulations under section 2012. This
property of the gross estate on the date
property includible in the decedent's
computation may be made using Form
of death and is included in the alternate
gross estate.
4808. Attach a copy of a completed
valuation.
Elect alternate valuation by checking
Form 4808 or the computation of the
Rent. Rent accrued to the date of the
“Yes,” on line 1 and filing Form 706. You
credit. Also, attach all available copies
decedent's death on leased real or
may make a protective alternate
of Forms 709 filed by the decedent to
personal property is property of the
valuation election by checking “Yes,” on
help verify the amounts entered on lines
gross estate on the date of death and is
line 1, writing the word “protective,” and
4 and 7, and the amount of credit taken
included in the alternate valuation.
filing Form 706 using regular values.
(on line 15) for pre-1977 federal gift
Dividends. Outstanding dividends that
taxes.
Once made, the election may not be
were declared to stockholders of record
revoked. The election may be made on
Canadian marital credit. In addition to
on or before the date of the decedent's
a late-filed Form 706 provided it is not
using line 15 to report credit for federal
death are considered property of the
filed later than 1 year after the due date
gift taxes on pre-1977 gifts, you may
gross estate on the date of death, and
(including extensions actually granted).
also use line 15 to claim the Canadian
are included in the alternate valuation.
Relief under Regulations sections
marital credit, where applicable.
Ordinary dividends declared to
301.9100-1 and 301.9100-3 may be
When taking the marital credit under
stockholders of record after the date of
available to make an alternate valuation
the 1995 Canadian Protocol:
the decedent's death are not included in
election or a protective alternate
Include the credit in the amount on
the gross estate on the date of death
valuation election, provided a Form 706
line 15 and
and are not eligible for alternate
is filed no later than 1 year after the due
Identify and enter the amount of the
valuation. However, if dividends are
date of the return (including extensions
credit you are taking on the dotted line
declared to stockholders of record after
actually granted).
to the left of the entry space for line 15
the date of the decedent's death so that
If alternate valuation is elected, value
on page 1 of Form 706 with a notation,
the shares of stock at the later valuation
the property included in the gross estate
“Canadian marital credit.”
date do not reasonably represent the
as of the following dates as applicable:
same property at the date of the
Also, attach a statement to the return
Any property distributed, sold,
decedent's death, include those
that refers to the treaty, waives QDOT
exchanged, or otherwise disposed of or
dividends (except dividends paid from
rights, and shows the computation of
separated or passed from the gross
earnings of the corporation after the
the marital credit. See the 1995
estate by any method within 6 months
date of the decedent's death) in the
Canadian income tax treaty protocol for
after the decedent's death is valued on
alternate valuation.
details on figuring the credit.
the date of distribution, sale, exchange,
On Schedules A through I, you must
or other disposition. Value this property
show:
Part 3—Elections by the
on the date it ceases to be a part of the
1. What property is included in the
Executor
gross estate; for example, on the date
gross estate on the date of the
the title passes as the result of its sale,
decedent's death;
exchange, or other disposition.
Note. The election to allow the
Any property not distributed, sold,
2. What property was distributed,
decedent's surviving spouse to use the
exchanged, or otherwise disposed of
sold, exchanged, or otherwise disposed
decedent's unused exclusion amount is
within the 6-month period is valued as of
of within the 6-month period after the
made by filing a timely and complete
6 months after the date of the
decedent's death, and the dates of
Form 706. See instructions for Part
decedent's death.
these distributions, etc. (These two
6—Portability of Deceased Spousal
Any property, interest, or estate that
items should be entered in the
Unused Exclusion, later, and sections
is affected by mere lapse of time is
“Description” column of each schedule.
2010(c)(4) and (c)(5).
valued as of the date of decedent's
Briefly explain the status or disposition
death or on the date of its distribution,
governing the alternate valuation date,
-10-
Part Instructions
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