Form 706 (Draft) - United States Estate (And Generation-Skipping Transfer) Tax Return - 2016 Page 20
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55Schedule A–Example 1
In this example, alternate valuation is not adopted; the date of death is January 1, 2016.
Item
Description
Alternate
Alternate
Value at
number
valuation
value
date of
date
death
1
House and lot, 1921 William Street, NW, Washington, DC (lot 6, square 481). Rent of $8,100 due
$550,000
at the end of each quarter, February 1, May 1, August 1, and November 1. Value based on
DRAFT AS OF
appraisal, copy of which is attached
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent due on item 1 for quarter ending November 1, 2015, but not collected at date of death
8,100
. . .
Rent accrued on Item 1 for November and December 2015
5,400
. . . . . . . . . . . . . . . . . . . . . .
2
House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 payable
375,000
monthly. Value based on appraisal, copy of which is attached
. . . . . . . . . . . . . . . . . . . . .
Rent due on Item 2 for December 2015, but not collected at death
1,800
. . . . . . . . . . . . . . . . . .
June 16, 2016
exclusion amount is the sum of the
the amount from Part 1, column D, if
Section B. Portability and Qualified
basic exclusion amount for the year of
any, to determine the decedent’s total
Domestic Trusts. A qualified domestic
death and any DSUE amount received
DSUE amount.
trust (QDOT) allows the estate of a
from a predeceased spouse, if
decedent to bequeath property to
Schedule A—Real Estate
applicable.
surviving spouse who is not a citizen of
the United States and still receive a
Line 2 is reserved.
If any assets to which the
marital deduction. When property
On line 3, enter the value of the
special rule of Regulations
!
passes to a QDOT, estate tax is
cumulative lifetime gifts on which gift tax
section 20.2010-2(a)(7)(ii)
imposed under section 2056A as
CAUTION
was paid or payable. This amount is
applies are reported on this schedule,
distributions are made from the trust.
figured on line 6 of the Line 7 Worksheet
do not enter any value in the last three
When a QDOT is established and there
Part B as the total of Row (r) from Line 7
columns. See instructions for line 10 of
is a DSUE amount, the executor of the
Worksheet Part A. Enter the amount as
Part 5–Recapitulation for information on
decedent’s estate will determine a
it appears on line 6 of the Line 7
how to estimate and report the value of
preliminary DSUE amount for the
Worksheet Part B
these assets.
purpose of electing portability. This
Figure the unused exclusion amount
amount will decrease as section 2056A
If the total gross estate contains any
on line 9. The DSUE amount available
distributions are made. In estates with a
real estate, complete Schedule A and
to the surviving spouse will be the lesser
QDOT, the DSUE amount generally
file it with the return. On Schedule A, list
of this amount or the basic exclusion
may not be applied against tax arising
real estate the decedent owned or had
amount shown on line 9a of Part 2—Tax
from lifetime gifts because it will not be
contracted to purchase. Number each
Computation. Enter the DSUE amount
available to the surviving spouse until it
parcel in the left-hand column.
as determined on line 10.
is finally determined, usually upon the
Describe the real estate in enough
death of the surviving spouse or when
Section D. DSUE Amount Received
detail so that the IRS can easily locate it
the QDOT is terminated.
from Predeceased Spouse(s).
for inspection and valuation. For each
Complete section D if the decedent was
parcel of real estate, report the area
Note. If a surviving spouse who is not a
a surviving spouse who received a
and, if the parcel is improved, describe
citizen of the United States becomes a
DSUE amount from one or more
the improvements. For city or town
citizen and the section 2056A tax no
predeceased spouse(s).
property, report the street and number,
longer applies to the assets of the
Section D requests information on all
ward, subdivision, block and lot, etc. For
QDOT, as of the date the surviving
DSUE amounts received from the
rural property, report the township,
spouse becomes a U.S. citizen, the
decedent’s last deceased spouse and
range, landmarks, etc.
DSUE amount is considered final and is
any previously deceased spouses.
available for application by the surviving
Each line in the chart should reflect a
If any item of real estate is subject to
spouse. See Regulations sections
different predeceased spouse; enter the
a mortgage for which the decedent's
20.2010-2(c)(4), 20.2010-3(c)(3), and
calendar year(s) in column F. In Part 1,
estate is liable, that is, if the
25.2505-2(d)(3).
provide information on the decedent’s
indebtedness may be charged against
Check the appropriate box in this
last deceased spouse. In Part 2, provide
other property of the estate that is not
section and see the instructions for
information as requested if the decedent
subject to that mortgage, or if the
Schedule M if more information is
had any other predeceased spouse
decedent was personally liable for that
needed about qualified domestic trusts.
whose executor made the portability
mortgage, you must report the full value
election. Any remaining DSUE amount
of the property in the value column.
Section C. DSUE Amount Portable to
which was not used prior to the death of
Enter the amount of the mortgage under
Decedent's Surviving Spouse.
a subsequent spouse is not considered
“Description” on this schedule. The
Complete section C only if electing
in this calculation and cannot be applied
unpaid amount of the mortgage may be
portability of the DSUE amount to the
against any taxable transfer. In column
deducted on Schedule K.
surviving spouse.
E, total only the amounts of DSUE
On line 1, enter the decedent’s
If the decedent’s estate is not liable
received and used from spouses who
applicable exclusion amount from Part
for the amount of the mortgage, report
died before the decedent’s last
2—Tax Computation, line 9c. Under
only the value of the equity of
deceased spouse. Add this amount to
section 2010(c)(2), the applicable
redemption (or value of the property
Part Instructions
-19-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions Draft For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return Estate Of Nonresident Not A Citizen Of The United States
Financial
Instructions For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return - 1999
Financial
Instructions For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return - 2007
Financial
Instructions For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return - Internal Revenue Service - 2006
Financial
Instructions For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return - Internal Revenue Service - 2008
Financial
Instructions For Form 706-na - United States Estate (and Generation-skipping Transfer) Tax Return - Internal Revenue Service - 2005
Financial
Related Categories
Parent category: Financial