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If you are required to file Schedule E,

are relying on the treaty. To determine

deduction under a treaty, specify the

G, or H from Form 706, you need not

initially whether the small estate

applicable treaty and attach a

enter the assets reported on those

exemption applies, however, you must

computation of the deduction.

schedules on Schedule A of this Form

include the exempt assets in the value of

Marital deduction. Unless a treaty

706-NA. Instead, attach the schedules to

the entire gross estate wherever located

allows otherwise, you may only take a

Form 706-NA, in column (b) enter “Total

on lines 2 and 3 of Schedule B.

marital deduction if the surviving spouse

from Schedule _ _ _ _ _, Form 706,” and

is a U.S. citizen or if the property passes

Schedule B

enter the total values from the attached

to a qualified domestic trust (QDOT)

schedules in either column (d) or (e).

For the line 5 deduction to be allowed,

described in section 2056A and an

If the decedent was a U.S. expatriate,

you must complete lines 1–4 and

election is made on Schedule M of Form

document the amounts you include on

the decedent is treated as owning a

706. Attach Schedule M of Form 706, and

lines 2 and 4.

prorated share of the U.S. property held

a statement showing your computation of

by a foreign corporation in which he or

the marital deduction.

To document the line 2 amount, attach

she directly owned at least 10% of the

a certified copy of the foreign death tax

See section 2518 for the rules

voting stock and, with related interests,

return; or if none was filed, a certified

governing disclaimers of interests in

controlled over 50% of it (section

copy of the estate inventory and the

property.

2107(b)).

schedule of debts and charges that were

Part II—Tax Computation

filed with the foreign probate court or as

Property valuation date. Generally,

part of the estate's administration

property must be valued as of the date of

Line 4. Use the chart and tax table below

proceedings. Supplement these

death. Columns (c) and (d) do not apply

to determine the tentative tax. Enter the

in this case, and you may use the space

documents with attachments if they do not

tentative tax on line 4, Part II.

to expand descriptions from column (b).

set forth the entire gross estate outside

the United States. If more proof is

IF the amount on

THEN, figure the tentative

However, you may elect to use the

line 3 of Part II is...

tax on line 3 using the...

needed, you will be notified.

alternate valuation date. To make this

To support the line 4 amount, attach an

election, check the “Yes” box at the

$10 million or less

Tax table below.

itemized schedule. For each expense or

beginning of Schedule A. If you do so, the

More than $10 million

Worksheet on page 4.

election applies to all property, and you

claim, specify the nature and amount and

will need to complete each column in

give the creditor's name. Describe other

Line 5. Use the chart and tax table below

Schedule A. Under this election, any

deductions fully and identify any particular

to determine the tentative tax. Enter the

property to which they relate.

property distributed, sold, exchanged, or

tentative tax on line 5, Part II.

otherwise disposed of within 6 months

Line 2. The amount on line 2 is the total

after the decedent's death is valued as of

value of the assets included in the entire

IF the amount on line

THEN, figure the tentative

the date of the disposition. Any property

2 of Part II is...

tax on line 2 using the...

gross estate that were located outside the

not disposed of during that period is

United States. If you claim deductions on

$10 million or less

Tax table below.

valued as of the date 6 months after the

line 5 of Schedule B, you must also

More than $10 million

Worksheet on page 4.

decedent's death.

document the amount you enter on line

2. See the first paragraph under

You may not elect alternate valuation

Schedule B, above. If you elected the

unless the election will decrease both the

Column A

Column B

Column C

Column D

value of the gross estate and the net

alternate valuation date for property listed

Rate of tax on

Taxable

Tax on

excess over

estate tax due after application of all

on Schedule A, use it also for the assets

amount

amount not

amount in

over

column A

reported on line 2. Otherwise, value the

allowable credits.

column A

amounts as of the date of death.

Percent

Qualified Conservation Easement

Line 4. You may deduct the following

$10,000

Exclusion

$10,000

20,000

$1,800

items whether or not they were incurred

20,000

40,000

3,800

Under section 2031(c), you may elect to

or paid in the United States: funeral

40,000

60,000

8,200

exclude a portion of the value of land that

expenses; administration expenses;

60,000

80,000

13,000

is subject to a qualified conservation

claims against the estate; unpaid

80,000

100,000

18,200

easement. You make the election by

100,000

150,000

23,800

mortgages and other liens; and

150,000

250,000

38,800

attaching Schedule U of Form 706 with

uncompensated losses that were incurred

250,000

500,000

70,800

all the required information. To elect the

during settlement of the estate and that

500,000

750,000

155,800

exclusion, you must include on Schedule

arose from theft or from casualties such

750,000

1,000,000

248,300

as fires, storms, or shipwrecks. You may

1,000,000

1,250,000

345,800

1,250,000

1,500,000

448,300

deduct only that part of a debt or

1. The decedents interest in the land

1,500,000

2,000,000

555,800

mortgage that was contracted in good

that is subject to the exclusion, and

2,000,000

2,500,000

780,800

faith and for full value in money or

2. Exclude the applicable value of the

2,500,000

3,000,000

1,025,800

money's worth. You may deduct

land (amount from line 21, Schedule U)

3,000,000 — — — —

1,290,800

mortgages only if you included the full

that is subject to the easement on

Line 7. Enter the unified credit. The

value of the mortgaged property in the

Schedule A.

unified credit is allowed for the smaller of

total gross estate on line 3. Do not deduct

You must make the election on a timely

the line 6 amount or the maximum unified

death taxes, tax on income received after

filed Form 706–NA, including extensions.

credit. In general, the maximum unified

death, or property taxes accrued after

For more information, see the Instructions

credit is $13,000. For a citizen of a U.S.

death.

for Form 706.

possession (section 2209) the maximum

On line 4, show the total of these

unified credit is the greater of: (a)

Canadian Small Estate Relief

deductible items. In general, the total is

$13,000, or (b) the product of $46,800

limited to the amount on line 3.

If you are claiming a small estate

times a fraction. The numerator of the

Line 6. Use line 6 to enter the following

exemption (worldwide estate of a

fraction is the part of the gross estate

deductions:

Canadian resident decedent not more

located in the United States (line 1 of

than $1.2 million) from tax on U.S.

Charitable deduction. Unless a treaty

Schedule B), and the denominator is the

securities or certain other U.S. situs

allows otherwise, you may take a

entire gross estate wherever located (line

property, under the 1995 Protocol to the

charitable deduction only if the transfer

3 of Schedule B). If the unified credit is

Canadian income tax treaty, do not list the

was to a domestic entity or for use in the

affected by a treaty, see section

exempt assets on Schedule A. List those

United States as described in the

2102(c)(3)(A). (At the time this form went

assets and their values in a statement

Instructions for Form 706. Attach

to print, treaties with Australia, Canada,

attached to the return specifying that you

Schedule O of Form 706. If you claim the

Finland, Greece, Italy, Japan, Norway,

Page 3

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - 1999 Page 3

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