Form 706 (Draft) - United States Estate (And Generation-Skipping Transfer) Tax Return - 2016 Page 7
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55Table A — Unified Rate Schedule
Note. You must complete Part 2—Tax
Computation.
Column A
Column B
Column C
Column D
Line 1
Taxable amount over
Taxable amount not
Tax on amount in
Rate of tax on excess
over
Column A
over amount in
If you elected alternate valuation on
Column A
line 1, Part 3—Elections by the
Executor, enter the amount you entered
$0
$10,000
$0
18%
in the “Alternate value” column of item
10,000
20,000
1,800
20%
DRAFT AS OF
13 of Part 5—Recapitulation. Otherwise,
20,000
40,000
3,800
22%
enter the amount from the “Value at date
40,000
60,000
8,200
24%
of death” column.
60,000
80,000
13,000
26%
80,000
100,000
18,200
28%
Line 3b. State Death Tax
100,000
150,000
23,800
30%
Deduction
150,000
250,000
38,800
32%
June 16, 2016
You may take a deduction on line 3b for
250,000
500,000
70,800
34%
estate, inheritance, legacy, or
500,000
750,000
155,800
37%
succession taxes paid on any property
750,000
1,000,000
248,300
39%
included in the gross estate as the result
1,000,000
– – – –
345,800
40%
of the decedent's death to any state or
the District of Columbia.
Lines 4 and 7
discussed in Rev. Rul. 86-117, 1986-2
You may claim an anticipated
C.B. 157, prior to the repeal of section
amount of deduction and figure the
Three worksheets are provided to help
2011.
federal estate tax on the return before
you figure the entries for these lines.
the state death taxes have been paid.
Send the following evidence to the
Worksheet TG—Taxable Gifts
However, the deduction cannot be
IRS:
Reconciliation allows you to reconcile
finally allowed unless you pay the state
the decedent's lifetime taxable gifts to
1. Certificate of the proper officer of
death taxes and claim the deduction
figure totals that will be used for the
the taxing state, or the District of
within 4 years after the return is filed, or
Line 4 Worksheet and the Line 7
Columbia, showing the:
later (see section 2058(b)) if:
Worksheet.
a. Total amount of tax imposed
A petition is filed with the Tax Court of
(before adding interest and penalties
You must have all of the decedent's
the United States,
and before allowing discount),
gift tax returns (Forms 709) before
You have an extension of time to pay,
completing Worksheet TG—Taxable
b. Amount of discount allowed,
or
Gifts Reconciliation. The amounts
You file a claim for refund or credit of
c. Amount of penalties and interest
needed for Worksheet TG can usually
an overpayment which extends the
imposed or charged,
be found on the filed returns that were
deadline for claiming the deduction.
d. Total amount actually paid in
subject to tax. However, if any of the
Note. The deduction is not subject to
cash, and
returns were audited by the IRS, use the
dollar limits.
e. Date of payment.
amounts that were finally determined as
If you make a section 6166 election
a result of the audits.
2. Any additional proof the IRS
to pay the federal estate tax in
specifically requests.
In addition, you must make a
installments and make a similar election
File the evidence requested above
reasonable effort to discover any gifts in
to pay the state death tax in
with the return, if possible. Otherwise,
excess of the annual exclusion made by
installments, see section 2058(b) for
send it as soon as possible after the
the decedent (or on behalf of the
exceptions and periods of limitation.
return is filed.
decedent under a power of attorney) for
If you transfer property other than
which no Forms 709 were filed. Include
Line 6
cash to the state in payment of state
the value of such gifts in column b of
inheritance taxes, the amount you may
To figure the tentative tax on the amount
Worksheet TG. The annual exclusion
claim as a deduction is the lesser of the
on line 5, use Table A—Unified Rate
per donee was $3,000 for 1977 through
state inheritance tax liability discharged
Schedule, above, and put the result on
1981, $10,000 for 1981 through 2001,
or the fair market value (FMV) of the
this line.
$11,000 for 2002 through 2005,
property on the date of the transfer. For
$12,000 for 2006 through 2008, and
more information on the application of
$13,000 for 2009 through 2012. For
such transfers, see the principles
2013 through 2016, the annual
exclusion for gifts of present interest is
$14,000 per donee.
-6-
Part Instructions
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