Instructions For Schedule E - Jointly Owned Property printable pdf download

IRS Form 706—United States Estate (and Generation-Skipping Transfer) Tax Return

Form 706 (Rev. 8-2008)

Instructions for Schedule E—Jointly Owned

Part 2. All other joint interests. All joint interests that

were not entered in Part 1 must be entered in Part 2.

Property

For each item of property, enter the appropriate

If you are required to file Form 706, you must complete

letter A, B, C, etc., from line 2a to indicate the name

Schedule E and file it with the return if the decedent

and address of the surviving co-tenant.

owned any joint property at the time of death, whether

Under “Description,” describe the property as

or not the decedent’s interest is includible in the gross

required in the instructions for Schedules A, B, C, and

estate.

F for the type of property involved.

Enter on this schedule all property of whatever kind

In the “Percentage includible” column, enter the

or character, whether real estate, personal property, or

percentage of the total value of the property that you

bank accounts, in which the decedent held at the time

of death an interest either as a joint tenant with right to

intend to include in the gross estate.

survivorship or as a tenant by the entirety.

Generally, you must include the full value of the

Do not list on this schedule property that the

jointly owned property in the gross estate. However,

the full value should not be included if you can show

decedent held as a tenant in common, but report the

that a part of the property originally belonged to the

value of the interest on Schedule A if real estate, or on

the appropriate schedule if personal property. Similarly,

other tenant or tenants and was never received or

community property held by the decedent and spouse

acquired by the other tenant or tenants from the

decedent for less than adequate and full consideration

should be reported on the appropriate Schedules A

in money or money’s worth, or unless you can show

through I. The decedent’s interest in a partnership

should not be entered on this schedule unless the

that any part of the property was acquired with

consideration originally belonging to the surviving joint

partnership interest itself is jointly owned. Solely

tenant or tenants. In this case, you may exclude from

owned partnership interests should be reported on

the value of the property an amount proportionate to

Schedule F, “Other Miscellaneous Property Not

Reportable Under Any Other Schedule.”

the consideration furnished by the other tenant or

tenants. Relinquishing or promising to relinquish dower,

Part 1. Qualified joint interests held by decedent

curtesy, or statutory estate created instead of dower or

and spouse. Under section 2040(b)(2), a joint interest

curtesy, or other marital rights in the decedent’s

is a qualified joint interest if the decedent and the

property or estate is not consideration in money or

surviving spouse held the interest as:

money’s worth. See the Schedule A instructions for the

● Tenants by the entirety, or

value to show for real property that is subject to a

● Joint tenants with right of survivorship if the

mortgage.

decedent and the decedent’s spouse are the only

If the property was acquired by the decedent and

joint tenants.

another person or persons by gift, bequest, devise, or

Interests that meet either of the two requirements

inheritance as joint tenants, and their interests are not

above should be entered in Part 1. Joint interests that

otherwise specified by law, include only that part of the

do not meet either of the two requirements above

value of the property that is figured by dividing the full

should be entered in Part 2.

value of the property by the number of joint tenants.

Under “Description,” describe the property as

If you believe that less than the full value of the

required in the instructions for Schedules A, B, C, and

entire property is includible in the gross estate for tax

F for the type of property involved. For example, jointly

purposes, you must establish the right to include the

held stocks and bonds should be described using the

smaller value by attaching proof of the extent, origin,

rules given in the instructions to Schedule B.

and nature of the decedent’s interest and the

interest(s) of the decedent’s co-tenant or co-tenants.

Under “Alternate value” and “Value at date of

death,” enter the full value of the property.

In the “Includible alternate value” and “Includible

value at date of death” columns, you should enter only

Note. You cannot claim the special treatment under

the values that you believe are includible in the gross

section 2040(b) for property held jointly by a decedent

estate.

and a surviving spouse who is not a U.S. citizen. You

must report these joint interests on Part 2 of

Schedule E, not Part 1.

Schedule E—Page 18

152

Instructions For Schedule E - Jointly Owned Property

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