Instructions For Form 706-Qdt (Page 3 of 6) in pdf

The U.S. trustee must provide a

Attach each Schedule B to the return

property of all trusts listed on Schedule

written statement with the bond or letter

when you file it.

A, Part III on the date of the surviving

of credit listing the assets that will fund

spouse’s death.

If there is not enough space on a

the QDOT, the values of the assets,

Note. You may not elect alternate

schedule to list all the items, attach an

and whether any exclusion for a

valuation for any property reported on

additional sheet of the same size to the

personal residence is being claimed.

Schedule A, Parts I and II.

back of the schedule.

Additional Information

You may not elect alternate

Rounding off to Whole

valuation unless the election will

For more information, including

Dollars

decrease both the value of the

additional requirements for a bond and

You may show the money items on the

Schedule A, Part III property, and the

letter of credit, details on the exclusion

net tax due on the return.

return and accompanying schedules as

of a personal residence, rules on the

whole dollars. To do so, drop any

A designated filer filing for multiple

disallowance of the marital deduction

amount less than 50 cents and

trusts must make this election for all of

for substantial undervaluation of QDOT

increase any amount from 50 cents

the Schedule A, Part III property in all

property, rules regarding foreign real

through 99 cents to the next dollar.

of the trusts, taken as a whole. The

property, and certain annual reporting

election cannot be made unless the

requirements (concerning ownership of

requirements are met for all of the

foreign real property, cessation of use

Specific Instructions

property.

of a personal residence, and

look-through rules applied to the

You elect alternate valuation by

ownership of foreign real property), see

checking “Yes” on line 1 and filing Form

Part I—General

Regulations section 20.2056A-2(d).

706-QDT. Once made, the election is

Information

irrevocable.

How To Complete Form

If you elect alternate valuation, you

Line 1b. Enter the taxpayer

706-QDT

must value all of the property to which

identification number (TIN) of the

the election applies as of the applicable

surviving spouse. The TIN is the SSN

date as follows.

Trustee Filing the Return

or ITIN.

1. Any property distributed, sold,

If trustee files entire return — Lines

If the trustee is filing the complete

exchanged, or otherwise disposed of by

2a, 2b, and 2c. If the trustee is filing

return, prepare it in the following order.

any method within 6 months after the

the entire return, enter the trustee’s

1. Part I — General Information on

surviving spouse’s death is valued on

information on lines 2a, 2b, and 2c.

page 1.

the date of distribution, sale, exchange,

2. Part II — Elections by the Trustee/

Line 2b. If the trustee/designated filer

or other disposition, whichever occurs

Designated Filer on page 1.

is an individual, enter his or her SSN.

first. Value the property on the date title

Otherwise, enter the employer

3. All of Schedule B (but only lines

passed as a result of the sale,

1a and 1b of Part I).

identification number (EIN) of the

exchange, or other disposition.

trustee/designated filer.

4. Schedule A.

2. Any property not distributed, sold,

5. Part III — Tax Computation on

Line 2c. Enter the address at which

exchanged, or otherwise disposed of

page 1.

you wish to receive correspondence

within the 6-month period is valued on

from the IRS regarding this return. This

the date 6 months after the date of the

Enter only the totals from Parts II

must be an address for the designated

surviving spouse’s death.

through VI of Schedule B in the

filer, or if the trustee is filing the return,

3. Any property that is “affected by

corresponding “Total” lines of

one of the individual trustees who is a

mere lapse of time” is valued as of the

Schedule A.

U.S. citizen or a trustee that is a

date of the surviving spouse’s death.

domestic corporation.

However, you may change the date of

Trustee Completing

death value to account for any change

Line 4a. Enter the name of the

Schedule B Only

in value that is not due to “mere lapse

decedent on whose estate tax return

If a designated filer will file the return,

of time” on the date of its distribution,

the QDOT election was made.

the trustee must complete all applicable

sale, exchange, or other disposition.

Line 4b. Enter the SSN of the

parts of Schedule B for his or her

decedent or, if applicable, the number

For additional details, see Part

respective trust and provide it to the

previously assigned to the decedent’s

3 — Elections by the Executor in the

designated filer at least 60 days before

estate by the service center.

separate Instructions for Form 706.

the due date for filing Form 706-QDT.

Line 2. Special-use valuation of

Part II—Elections by the

Designated Filer Filing the

section 2032A. Under section 2032A,

Return

Trustee/Designated Filer

you may elect to value certain farm and

closely held business real property at

The designated filer must receive a

If this return is being filed because of

its farm or business use value rather

completed Schedule B from the trustee

the death of the surviving spouse, and

than its FMV. You may elect both

of every QDOT that has had a

any property remaining in the QDOT at

special-use valuation and alternate

reportable event or a hardship

that time is includible in the estate of

valuation. To elect this valuation, you

distribution during the tax year. The

the surviving spouse (or would be

must check “Yes” on line 2 and

designated filer would then summarize

includible if the surviving spouse had

complete and attach Schedule A-1 of

these on Schedule A.

been a U.S. citizen or resident), then

Form 706 and its required additional

Complete the return in the following

the trustee/designated filer may elect to

statements.

apply certain estate tax benefits on this

order.

You must file Schedule A-1 of

return, provided the estate of the

1. Part I — General Information on

surviving spouse would be eligible for

Form 706 and its required

page 1.

these benefits.

attachments with Form

CAUTION

2. Part II — Elections by the Trustee/

706-QDT for this election to be valid.

Designated Filer on page 1.

Line 1. Alternate valuation. Unless

3. Schedule A.

you elect at the time you file this return

The total value of the property

4. Part III — Tax Computation on

to adopt alternate valuation under

valued under section 2032A may not be

page 1.

section 2032, then you must value all

decreased from FMV by more than

-3-

Instructions For Form 706-Qdt Page 3

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