Instructions For Form 706-Qdt - Department Of The Treasury (Page 4 of 6) in pdf

You must file Schedule A-1 of

bond. Alternatively, the executor may

Send the completed Form SS-4 to

Form 706 and its required

consent to the special lien provisions of

the Internal Revenue Service Center

attachments with Form

section 6324A, in lieu of the bond. The

listed under Where To File on page 2. If

CAUTION

706-QDT for this election to be valid.

IRS will contact you regarding the

the EIN has not been received by the

specifics of furnishing the bond or

filing time for Form 706-QDT, write

The total value of the property

electing the special lien.

“Applied for” on line 1b.

valued under section 2032A may not be

decreased from fair market value by

Line 2a. You must enter on this line

Line 4. Spousal election. If the

more than $900,000 for decedents

either the name of an individual trustee

surviving spouse has become a U.S.

dying in 2006 ($940,000 for 2007). For

who is a U.S. citizen or a trustee that is

citizen, the QDOT tax will not apply to

a domestic corporation. If there is more

future years, the IRS will publish the

any distributions made after the

than one trustee, enter the one to be

amount in an annual revenue

surviving spouse became a citizen as

procedure.

contacted by the IRS. List the names of

long as either:

•

all additional trustees on a sheet of

The surviving spouse had been a

Real property may qualify for the

paper attached to this return. Include

U.S. resident at all times after the death

section 2032A election if:

the SSN or EIN of all U.S. citizens or

of the decedent and before becoming a

1. The real property is located in the

domestic corporations.

citizen or

United States;

•

No QDOT tax had been imposed on

Line 2b. Enter the SSN or EIN, as

2. The real property is used for

any distributions prior to the surviving

applicable, of the trustee listed on line

farming or in a trade or business;

spouse becoming a citizen.

2a.

3. The real property was acquired

from or passed from the surviving

You should file a final Form

Part II—Taxable

spouse to a qualified heir of the

706-QDT to notify the IRS that the

Distributions From Prior

surviving spouse;

QDOT tax no longer applies for this

Years

4. The real property was owned and

reason.

used in a qualified manner by the

Enter here the total of all taxable

If the surviving spouse does not

surviving spouse or a member of the

distributions that were or should have

meet either of the conditions above, the

surviving spouse’s family for 5 of the 8

been reported on previously filed Forms

QDOT tax will still not apply to

years before the surviving spouse’s

706-QDT.

distributions after he or she became a

death; and

citizen if the surviving spouse elects

5. The qualified property is the

Part III—Current Taxable

both:

percentage of the surviving spouse’s

Distributions

1. To treat any distributions that

gross estate specified in section 2032A.

Enter here the total amount of corpus

were subject to QDOT tax as taxable

distributed during the calendar year or

For definitions and additional

gifts for purposes of determining the

other period covered by this return and

information, see section 2032A and the

estate or gift tax under sections 2001

before the date of death of the surviving

related regulations. Also see the Form

and 2501, respectively, for the year the

spouse. Include as a distribution on this

706 instructions for Part 3 — Elections

surviving spouse became a citizen and

line any QDOT estate tax paid during

by the Executor and the instructions for

all subsequent years and

the calendar year out of the QDOT.

Schedule A-1 within the Form 706 itself.

2. To treat any of the decedent’s

Include all distributions even if the

unified credit (applicable credit amount)

Line 3. Installment payments. If you

hardship exemption is being claimed.

that was used to reduce the QDOT tax

check this line to make a protective

on taxable distributions as use of the

election, you should attach a notice of

Also, include as distributions in this

surviving spouse’s own unified credit for

protective election as described in

part any reportable payments to the

purposes of determining the spouse’s

Regulations section 20.6166-1(d). If

surviving spouse from nonassignable

available unified credit under section

you check this line to make a final

annuities and other arrangements when

2505 for the year he or she became a

election, you should attach the notice of

the executor has filed with the estate

citizen and for all subsequent years.

election described in Regulations

tax return for the decedent’s estate an

section 20.6166-1(b).

agreement to pay section 2056A estate

To make these elections, check

tax on such distributions. For details,

In computing the adjusted gross

“Yes” on line 4.

see Regulations section 20.2056A-4(c).

estate under section 6166(b)(6) for

Column a. Date of distribution. The

purposes of determining whether an

Schedule B

election may be made under section

date of distribution is the date on which

6166, the net amount of any real estate

the title to the distributed property

Part I—General Information

in a closely held business must be

passed from the trustee to the surviving

used.

spouse.

If the trustee is filing the entire return,

Bond or lien required. The IRS

Column b. Description. Include in the

you need to complete only lines 1a and

requires that an estate furnish a surety

description the name of the individual(s)

1b of this part of Schedule B (but all of

bond when electing to pay the estate

to whom the distribution was made.

Parts II through VI). When completing

tax in installments under section 6166.

Part I on page 1, enter the remaining

Real estate. Describe the real

In the alternative, the executor may

trustee’s information on lines 2a, 2b,

estate in enough detail so that the IRS

consent to elect the special lien

and 2c.

can easily locate it for inspection and

provisions of section 6324A, in lieu of

valuation. For each parcel of real

Line 1b. All trusts filing Form 706-QDT

the bond.

estate, report the location and, if the

must have an EIN. A trust that does not

If you elect the lien provisions,

parcel is improved, describe the

have an EIN should apply for one on

section 6324A requires that the lien be

improvements. For city or town

Form SS-4, Application for Employer

placed on property having a value

property, report the street number,

Identification Number. You can get

equal to the total deferred tax plus four

ward, subdivision, block and lot, etc.

Form SS-4, and other IRS tax forms

years of interest. The property must be

For rural property, report the township,

and publications, by calling

expected to survive the deferral period.

range, landmarks, etc.

1-800-TAX-FORM (1-800-829-3676)

To be eligible for the section 6166

or by accessing the IRS website at

Stocks and bonds. For stocks,

election, you must agree to furnish a

give:

-4-

Instructions For Form 706-Qdt - Department Of The Treasury Page 4

Related Articles

Related forms

Related Categories