Schedule Ct-706 Draft Template - Farmland (Page 3 of 4) in pdf

Schedule CT-706 Farmland

Instructions

Complete this schedule in blue or black ink only.

Signature of Executor or Administrator

Sign and date this schedule.

Who Must File

Give the qualiﬁ ed heir a copy of this schedule and instructions.

Any Executor/Administrator who elects a special-use valuation

Attach this schedule to your completed Form CT-706/709.

as farmland under Internal Revenue Code (I. R. C.) §2032A

must complete Schedule CT-706 Farmland and attach it to its

Qualiﬁ ed Heir Instructions

completed Form CT-706/709, Connecticut Estate and Gift Tax

A qualiﬁ ed heir is liable for additional estate tax if, within 10 years

Return, if the land is valued based upon its current classiﬁ cation

of the decedent’s date of death, the farmland is transferred to

and use as farmland.

nonlineal

descendant, is no longer classiﬁ ed as farmland, or

Disposition or Cessation of Qualiﬁ ed Use as Farmland

fails to qualify for special-use valuation under I. R. C. §2032A.

If this occurs, the qualiﬁ ed heir must submit to the Department

The additional estate tax is due if within

years from the

of Revenue Services (DRS):

decedent’s date of death the farmland is:

1. A copy of the Schedule CT-706 Farmland provided to the

• Transferred by the qualiﬁ ed heir to anyone other than a lineal

qualiﬁ ed herby the Executor/Administrator; and

descendant or spouse of the lineal descendant;

2. A written statement that includes the date:

• No longer classiﬁ ed as farmland; or

a. The land was transferred to a person other than the

• Fails to qualify for special-use classiﬁ cation under

I. R. C. §

2032A.

qualiﬁ ed heir’s lineal descendant or the lineal descendant’s

The qualifying heir (or the qualifying heir’s lineal descendant or

spouse;

the descendant’s spouse if the farmland has been transferred by

b. The classiﬁ cation of the land was changed from farmland;

the qualifying heir to the qualifying heir’s lineal descendant or the

descendant’s spouse) must ﬁ le this schedule and pay the tax due.

c. The land failed to qualify for special use valuation under

To compute the tax due, subtract the tax paid by the decedent

I. R. C. §2032A.

from the tax that would have been due from the decedent if the

decedent had ﬁ led Form CT-706/709 using the fair market value

Due Date of Additional Tax

of the farmland without electing special-use valuation.

The additional estate tax is the amount entered in

Schedule

CT-706 Farmland,

Column D. The qualiﬁ ed heir

must

ﬁ le this

Executor/Administrator Instructions

schedule and pay the tax due no later than

six

months following

Enter the decedent’s name, mailing address and Social Security

the transfer, reclassiﬁ cation, or failure to qualify for special use.

Number (SSN) at the top of the schedule.

Interest accrues at the rate of 1% per month or fraction of a

Complete

Schedule CT-706 Farmland, Columns A through D as

month from the due date until the tax is paid in full.

shown below for each item.

Pay

the additional estate tax due in full with

Schedule CT-706

Column A: Enter the schedule and item number where reported

Farmland.

on the decedent’s Form 706. Provide a description

Make check payable to Commissioner of Revenue Services.

of the specially valued property including the volume

To ensure payment is applied properly, write the date of death,

and page number of the land records of the town

“Schedule CT-706 Farmland” and the SSN of the decedent,

where the property is located.

optional, on the front of your check. Be sure to sign your check

Column B: Enter the fair market value of the farmland based on

and paper clip it to the front of your return. Do not send cash.

its highest and best use as of the decedent’s date of

DRS may submit your check to your bank electronically.

death. This should be the same value as on federal

Mail to:

Form 706, Schedule A-1, Part 2, Column B.

Department of Revenue Services

Column C: Enter the value of the farmland based on its current

State of Connecticut

use as farmland as of the decedent’s date of death.

PO Box 2978

This should be the same value as on federal Form 706,

Hartford, CT 06104-2978

Schedule A-1, Part 2, Column D.

Extension of Time to Pay

Column D: Calculate the additional estate tax that would have

The Commissioner of Revenue Services may, for good cause,

been due if the decedent ﬁ led Form CT-706/709

extend the time for payment of the tax if the qualiﬁ ed heir, a

using the fair market value of the farmland. Subtract

lineal descendant, or that descendant’s spouse ﬁ les a written

the actual tax reported on Form CT-706/709,

application with the Commissioner of Revenue Services before

Section 3, Line 13, from the tax that would have

the

six

month period expires.

been due if the decedent ﬁ led Form CT-706/709

using the fair market value of farmland.

Page 3 of 4

Schedule CT-706 Farmland (New 05/17)

P:\Special\AFP\PROD\FORMS\17\Schedule\Schedule CT-706 Farmland\Schedule CT-706 Farmland 20170523.indd

20170523

1:54:27

Schedule Ct-706 Draft Template - Farmland Page 3

Related Articles

Related forms

Related Categories