Instructions For Form 706-Gs(T) - 2006 (Page 4 of 6) in pdf

interest property. In this case, you must

than 1 year after the due date

The denominator of the revised

refer to the gift tax return (Form 709,

(including extensions).

fraction is the total value of the entire

United States Gift (and Generation-

trust immediately after the latest

If you elect alternate valuation, value

Skipping Transfer) Tax Return) of the

addition.

the property interest that has been

donor spouse or the decedent’s estate

If the addition results from a

terminated as follows.

tax return (Form 706, United States

generation-skipping transfer, reduce

1. Any property distributed or

Estate (and Generation-Skipping

both the numerator and denominator by

otherwise disposed of or separated

Transfer) Tax Return) for the

the amount of any GST tax imposed on

from the trust within 6 months after the

information needed to figure the

the transfer and recovered from the

termination is valued on the date of

inclusion ratio.

trust.

distribution or other disposition. Value

the property on the date it ceases to

Round off the allocation fraction to

Schedule A (Lines 1–4)

form a part of the trust; that is, on the

five decimal places (for example

Note. If you need more than one

date the title passes as a result of its

“.00123”).

Schedule A, make copies before

distribution or other disposition.

Column a. Identify by separate item

completing it. Also, make a copy of

2. Any property not distributed or

number all property in which an interest

Schedule B for each Schedule A you

otherwise disposed of within 6 months

has terminated during the tax year. You

will file. If you need additional space to

following the termination is valued on

may combine under the same item

provide all the required information for

the date 6 months after the termination.

number all property that has the same

any given schedule, attach a separate

3. Any property or interest that is

termination date, valuation date, and

sheet of the same size to that schedule.

affected by mere lapse of time is valued

unit value, such as stocks or bonds.

as of the time of termination. However,

Combine on a single Schedule A all

Otherwise, assign a separate item

you may change this date of

terminations from a single trust that

number to each article of property.

termination value to the date of

have the same inclusion ratio (as

Column b. (Description of property).

distribution or other disposition to

discussed on page 5). However, you

Real estate. Describe the real estate in

account for any change that is not due

must complete a separate Schedule A

enough detail so that the IRS can easily

to mere lapse of time.

for each terminating interest that has a

locate it for inspection and valuation.

different inclusion ratio. Number each

For each parcel of real estate, report

If the alternate valuation date falls

Schedule A consecutively in the space

the area and, if the parcel is improved,

after the initial due date of the return,

provided at the top.

describe the improvements. For city or

you must request an extension to file

town property, report the street number,

Line 2

on Form 7004. The extension is

ward, subdivision, block and lot, etc.

automatic, so you do not have to sign

For the purposes of line 2, termination

For rural property, report the township,

the form or provide a reason for your

means the termination (for example, by

range, landmarks, etc.

request. See Form 7004 for more

death, lapse of time, or release of

information.

Stocks and Bonds. For stocks,

power, etc.) of an interest in property

indicate:

held in trust unless:

•

Line 4

Number of shares;

Immediately after the termination, a

•

Whether common or preferred;

non-skip person has an interest in such

Terminations of interests in trusts to

•

Issue;

property; or

which additions have been made. As

•

Par value where needed for

At no time after the termination is it

described beginning on page 2, when

valuation;

possible for a distribution (including

an addition is made to an irrevocable

•

Price per share;

distributions on termination) to be made

trust after September 25, 1985, only the

•

Exact name of corporation;

from the trust to a skip person.

portion of the trust resulting from the

•

Principal exchange upon which sold,

addition is subject to the GST tax. For

Also, if you are reporting separate

if listed on an exchange; and

terminations, this portion is the product

•

trusts (as that term is described under

CUSIP number.

of the allocation fraction and the value

Who Must File on page 1) on this Form

For bonds, indicate:

of the property subject to the

706-GS(T), explain why you are

•

Quantity and denomination;

termination (including accumulated

treating parts of the trust as separate

•

Name of obligor;

income and appreciation on that

trusts.

•

Date of maturity;

property).

•

Principal exchange, if listed on an

Line 3

The allocation fraction is a fraction,

exchange;

You may elect alternate valuation under

•

the numerator of which is the value of

Interest rate;

section 2032 for all terminations in the

•

the addition as of the date it was made

Interest due date; and

same trust that occurred at the same

•

(regardless of whether it was subject to

CUSIP number.

time as and as a result of the death of

gift or estate tax). The denominator of

If the stock or bond is unlisted, show

an individual. If you elect alternate

the fraction is the fair market value of

the company’s principal business office.

valuation, you must use it to value all

the entire trust immediately after the

property included in those terminations.

addition, less any trust amount that is

The CUSIP (Committee on Uniform

similar to expenses, indebtedness, or

You may not elect alternate

Security Identification Procedure)

taxes that would be allowable as a

number is a nine-digit number assigned

valuation unless the election will

deduction under section 2053.

decrease both the total value of the

to all stocks and bonds traded on major

property interests that were subject to

exchanges and many unlisted

When there is more than one

the termination and the total net GST

securities. Usually, the CUSIP number

addition, the allocation fraction must be

tax due after the allowable credit.

is printed on the face of the stock

revised after each addition. The

certificate. If the CUSIP number is not

Check the box on line 3 of all the

numerator of the revised fraction is the

printed on the certificate, it may be

applicable Schedules A if you elect

sum of:

•

obtained through the company’s

alternate valuation. Once made, the

The value of the portion of the trust

transfer agent.

election cannot be revoked. You may

subject to the GST tax immediately

make the election on a late filed Form

before the last addition, and

Other personal property. Any interest

•

706-GS(T) provided it is not filed later

The amount of the latest addition.

in personal property involved in a

-4-

Instructions For Form 706-Gs(T) - 2006 Page 4

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