Looking for a Form 706 Templates? Download it for free!

Describe the property on Schedule A

Mar ital deduction.—Unless a treaty

Schedule B

in enough detail to enable the IRS to

allows otherwise, you may only take a

For the line 5 deduction to be allowed,

identify it. To determine the fair market

marital deduction if the surviving spouse

you must complete lines 1–4 and

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

value of stocks and bonds, use the rules

document the amounts you include on

in the instructions for Schedule B of

to a qualified domestic trust (QDOT)

lines 2 and 4.

Form 706.

described in section 2056A and an

election is made on Schedule M of Form

To document the line 2 amount, attach a

In descriptions of stock include the

706.

certified copy of the foreign death tax

corporation’s name; the number of

return; or if none was filed, a certified

shares; whether common or preferred (if

If you claim a marital deduction,

copy of the estate inventory and the

preferred, what issue); the par value

include the deduction on line 6. Attach

schedule of debts and charges that were

(when needed for identification); CUSIP

Schedule M of Form 706, and a

filed with the foreign probate court or as

number if available; and the quotation at

statement showing your computation of

part of the estate’s administration

which reported. Give the main exchange

the marital deduction.

proceedings. If more proof is needed,

for listed stock; for unlisted stock, give

See section 2518 for the rules

you will be notified.

the post office address of the main

governing disclaimers of interests in

business office of the corporation, the

To support the line 4 amount, attach

property.

state in which incorporated, and the

an itemized schedule. For each expense

Part II.—Tax Computation

incorporation date.

or claim, specify the nature and amount

and give the creditor’s name. Describe

In bond descriptions include the

Line 4.—If line 3 of Part II is $10 million

other deductions fully and identify any

quantity and denomination; obligor’s

or less, use the amount on line 3 to find

particular property to which they relate.

name; maturity date; interest rate; each

the tax in the Tax Table below. Enter the

date when interest is payable; CUSIP

Line 2.—The amount on line 2 is the

tax on line 4, Part II.

number if available; and series number

total value of the assets included in the

If line 3 of Part II exceeds $10 million,

(if more than one issue). Give the

entire gross estate that were located

use the worksheet on page 4 to figure

exchange where the bond is listed; if it

outside the United States. If you claim

the amount to enter on line 4, Part II.

is unlisted, give the corporation’s main

deductions on line 5 of Schedule B, you

Line 5.—If line 2 of Part II is $10 million

business office.

must also document the amount you

or less, use the amount on line 2 to find

enter on line 2. See the first paragraph

If you are required to file Schedule E,

the tax in the Tax Table below. Enter the

under Schedule B, above. If you elected

G, or H from Form 706, you need not

tax on line 5, Part II.

the alternate valuation date for property

enter the assets reported on those

If line 2 of Part II exceeds $10 million,

listed on Schedule A, use it also for the

schedules on Schedule A of this Form

use the worksheet on page 4 to figure

assets reported on line 2. Otherwise,

706-NA. Instead, attach the schedules

the amount to enter on line 5, Part II.

value the amounts as of the date of

to Form 706-NA, in column (b) enter

death.

“Total from Schedule - - - - , Form 706,”

Column A

Column B

Column C

Column D

Rate of tax

and enter the total values from the

Line 4.—You may deduct the following

Taxable

Tax on

on excess

attached schedules in either column (d)

items whether or not they were incurred

amount

amount in

over

or (e).

or paid in the United States: funeral

over

not over

column A

amount in

expenses; administration expenses;

If the decedent was a U.S. expatriate,

column A

claims against the estate; unpaid

the decedent is treated as owning a

(Percent)

mortgages and other liens; and

prorated share of the U.S. property held

$10,000

20,000

$1,800

uncompensated losses that were

by a foreign corporation in which he or

20,000

40,000

3,800

incurred during settlement of the estate

she directly owned at least 10% of the

40,000

60,000

8,200

and that arose from theft or from

voting stock and, with related interests,

60,000

80,000

13,000

casualties such as fires, storms, or

controlled over 50% of it (section

80,000

100,000

18,200

shipwrecks. You may deduct only that

2107(b)).

100,000

150,000

23,800

part of a debt or mortgage that was

Property valuation date.—Generally,

150,000

250,000

38,800

contracted in good faith and for full

250,000

500,000

70,800

property must be valued as of the date

500,000

750,000

155,800

value in money or money’s worth. You

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

750,000

1,000,000

248,300

may deduct mortgages only if you

apply in this case, and you may use the

1,000,000

1,250,000

345,800

included the full value of the mortgaged

space to expand descriptions from

1,250,000

1,500,000

448,300

property in the total gross estate on line

column (b).

1,500,000

2,000,000

555,800

3. Do not deduct death taxes, tax on

2,000,000

2,500,000

780,800

However, you may elect to use the

income received after death, or property

alternate valuation date. To make this

2,500,000

3,000,000

1,025,800

taxes accrued after death.

3,000,000

- - - - - -

1,290,800

election, check the “Yes” box at the

On line 4, show the total of these

beginning of Schedule A. If you do so,

Line 7.—Enter the unified credit. The

deductible items. In general, the total is

the election applies to all property, and

unified credit is allowed for the smaller

limited to the amount on line 3.

you will need to complete each column

of the line 6 amount or the maximum

Line 5.—To find your actual deduction,

in Schedule A. Under this election, any

unified credit. In general, the maximum

multiply the line 4 amount by a fraction.

property distributed, sold, exchanged, or

unified credit is $13,000. For a citizen of

The numerator is the amount on line 1,

otherwise disposed of within 6 months

a U.S. possession (section 2209) the

and the denominator is the amount on

after the decedent’s death is valued as

maximum unified credit is the greater of:

line 3. Enter the result on line 5.

of the date of the disposition. Any

(a) $13,000, or (b) the product of

property not disposed of during that

Line 6.—Char itable deduction.—Unless

$46,800 times a fraction. The numerator

period is valued as of the date 6 months

a treaty allows otherwise, you may take

of the fraction is the part of the gross

after the decedent’s death.

a charitable deduction only if the

estate located in the United States (line

transfer was to a domestic entity or for

You may not elect alternate valuation

1 of Schedule B), and the denominator

use in the United States as described in

unless the election will decrease both

is the entire gross estate wherever

Pub. 448. Attach Schedule O of Form

the value of the gross estate and the net

located (line 3 of Schedule B). If the

706. If you claim the deduction under a

estate tax due after application of all

unified credit is affected by a treaty, see

treaty, specify the applicable treaty and

allowable credits.

section 2102(c)(3)(A). (At the time this

attach a computation of the deduction.

form went to print, treaties with

Page 3

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - Internal Revenue Service - 1993 Page 3

Related Articles

Related forms

Related Categories