Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2011 Page 17
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43Example showing use of Schedule B where the alternate valuation is not adopted; date of death, January 1, 2010
Description, including face amount of bonds or number of shares and par value
Alternate
Value at
Item
where needed for identification. Give CUSIP number. If trust, partnership, or
valuation
Alternate
date of
number
closely held entity, give EIN.
Unit value
date
value
death
CUSIP number or
EIN, where
applicable
1
$60,000-Arkansas Railroad Co. first mortgage 4%, 20-year
bonds, due 2011. Interest payable quarterly on Feb. 1, May
1, Aug. 1, and Nov. 1; N.Y. Exchange . . . . . . . . . . . . . . . XXXXXXXXX
100
- - - - - - - $- - - - - - -
$ 60,000
Interest coupons attached to bonds, item 1, due and
payable on Nov. 1, 2009, but not cashed at date of death . .
- - - - - - -
- - - - - - -
- - - - - - -
600
Interest accrued on item 1, from Nov. 1, 2009 to Jan. 1,
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- - - - - - -
- - - - - - -
- - - - - - -
400
2
500 shares Public Service Corp., common; N.Y. Exchange
XXXXXXXXX
110
- - - - - - -
- - - - - - -
55,000
Dividend on item 2 of $2 per share declared Dec. 10, 2009,
payable on Jan. 9, 2010, to holders of record on Dec. 30,
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- - - - - - -
- - - - - - -
- - - - - - -
1,000
Example showing use of Schedule B where the alternate valuation is adopted; date of death, January 1, 2010
Item
Description, including face amount of bonds or number of shares and par value
Alternate
Value at
number
where needed for identification. Give CUSIP number. If trust, partnership, or
valuation
Alternate
date of
closely held entity, give EIN.
Unit value
date
value
death
CUSIP number or
EIN, where
applicable
1
$60,000-Arkansas Railroad Co. first mortgage 4%, 20-year
bonds, due 2011. Interest payable quarterly on Feb. 1, May
1, Aug. 1, and Nov. 1; N.Y. Exchange . . . . . . . . . . . . . . . . XXXXXXXXX
100
- - - - - -
$- - - - - -
$ 60,000
$30,000 of item 1 distributed to legatees on Apr. 1, 2010 . .
99
4/1/10
29,700
- - - - - -
$30,000 of item 1 sold by executor on May 1, 2010 . . . . . .
98
5/1/19
29,400
- - - - - -
Interest coupons attached to bonds, item 1, due and
payable on Nov. 1, 2009, but not cashed at date of death.
Cashed by executor on Feb. 2, 2010 . . . . . . . . . . . . . . . .
- - - - - -
2/2/10
600
600
Interest accrued on item 1, from Nov. 1, 2009, to Jan. 1,
2010. Cashed by executor on Feb. 2, 2010 . . . . . . . . . . . .
- - - - - -
2/2/10
400
400
2
500 shares Public Service Corp., common; N.Y. Exchange
XXXXXXXXX
110
- - - - - -
- - - - - -
55,000
Not disposed of within 6 months following death . . . . . . . .
90
7/1/10
45,000
- - - - - -
Dividend on item 2 of $2 per share declared Dec. 10, 2009,
paid on Jan. 9, 2010, to holders of record on Dec. 30, 2009
- - - - - -
1/9/10
1,000
1,000
If no actual sales were made
sale prices per share were $10 and
the valuation date) and statements of
reasonably close to the valuation date,
$15, respectively. Therefore, the price
the net earnings or operating results
of $12 is considered the FMV of a
and dividends paid for each of the 5
make the same computation using the
share of stock on the valuation date. If,
years immediately before the valuation
mean between the bona fide bid and
however, on June 13 and 18, the mean
date.
asked prices instead of sales prices. If
sale prices per share were $15 and
actual sales prices or bona fide bid and
Securities reported as of no value, of
$10, respectively, the FMV of a share
asked prices are available within a
nominal value, or obsolete should be
of stock on the valuation date is $13.
reasonable period of time before the
listed last. Include the address of the
valuation date but not after the
If only closing prices for bonds are
company and the state and date of the
valuation date, or vice versa, use the
available, see Regulations section
incorporation. Attach copies of
mean between the highest and lowest
20.2031-2(b).
correspondence or statements used to
sales prices or bid and asked prices as
determine the “no value.”
Apply the rules in the section 2031
the FMV.
regulations to determine the value of
If the security was listed on more
For example, assume that sales of
inactive stock and stock in close
than one stock exchange, use either
stock nearest the valuation date (June
corporations. Attach to Schedule B
the records of the exchange where the
15) occurred 2 trading days before
complete financial and other data used
security is principally traded or the
(June 13) and 3 trading days after
to determine value, including balance
composite listing of combined
(June 18). On those days, the mean
sheets (particularly the one nearest to
exchanges, if available, in a publication
-17-
Part Instructions
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