Form It-1 And Instructions - Inheritance Tax - 2004 Page 6
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14Line 6. Tentative federal tax
Line 12. Adjustment to unified credit (applicable
credit amount)
The tentative tax amount needs to be calculated because it re-
sults in a limitation to the state death tax. Use the amount from
If the decedent made gifts (including gifts made by the
line 5, on which to figure the tentative tax, use Table A below.
decedent’s spouse and treated as made by the decedent by rea-
son of gift splitting) after September 8, 1976, and before Janu-
ary 1, 1977, for which the decedent claimed a specific exemption,
Table A—Unified rate schedule
(according to federal
the unified credit (applicable credit amount) on this estate tax
return must be reduced. The reduction is figured by entering
law as of December 31, 2000)
20 percent of the specific exemption claimed for these gifts.
Column A
Column B
Column C
Column D
Note: (The specific exemption was allowed by Section 2521 for
Rate of tax
gifts made before January 1, 1977.)
on excess
Taxable
Taxable
Tax on
over amount
If the decedent did not make any gifts between September 8,
amount
amount
amount in
in column A
1976, and January 1, 1977, or if the decedent made gifts during
over
not over
column A
(Percent)
that period but did not claim the specific exemption, enter zero.
0
$10,000
0
18
$10,000
20,000
$1,800
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Line 15. State death tax (Oregon inheritance tax)
20,000
40,000
3,800
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Enter the amount figured by using Table B below, or the
40,000
60,000
8,200
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amount on line 14, whichever is less. The adjusted taxable
60,000
80,000
13,000
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estate is the amount of the taxable estate (line 3 of the Tax
80,000
100,000
18,200
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Computation) reduced by $60,000.
100,000
150,000
23,800
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150,000
250,000
38,800
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250,000
500,000
70,800
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Table B—Computation of maximum state death
500,000
750,000
155,800
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tax
(according to federal law as of December 31, 2000)
750,000
1,000,000
248,300
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1,000,000
1,250,000
345,800
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Taxable estate (Form IT-1, Part 2, line 3) less $60,000 =
1,250,000
1,500,000
448,300
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(adjusted taxable estate—for column 1 below)
1,500,000
2,000,000
555,800
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Column 1
Column 2
Column 3
Column 4
2,000,000
2,500,000
780,800
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Adjusted
Rate of tax
2,500,000
3,000,000
1,025,800
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taxable
Adjusted
on excess
3,000,000
—
1,290,800
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estate equal
taxable
Tax on
over amount
to or more
estate less
amount in
in column 1
than
than
column 1
(Percent)
Line 7
0
$40,000
0
None
Lines 7a through 7c are used to calculate the phase-out of
$40,000
90,000
0
0.8
the graduated rates. The phase-out applies only if the
90,000
140,000
$400
1.6
amount on line 5 exceeds $10 million.
140,000
240,000
1,200
2.4
240,000
440,000
3,600
3.2
Line 11. Maximum unified credit (applicable credit
440,000
640,000
10,000
4.0
amount)
640,000
840,000
18,000
4.8
840,000
1,040,000
27,600
5.6
The applicable credit amount for Oregon is $287,300 for the
1,040,000
1,540,000
38,800
6.4
estates of decedents dying in 2004. The amount of the credit
1,540,000
2,040,000
70,800
7.2
cannot exceed the amount of estate tax imposed.
2,040,000
2,540,000
106,800
8.0
Important: If the estate is claiming a qualified family-owned busi-
2,540,000
3,040,000
146,800
8.8
ness interest deduction (QFOBI) on Schedule T, the sum of the
3,040,000
3,540,000
190,800
9.6
QFOBI deduction and the applicable exclusion amount cannot exceed
3,540,000
4,040,000
238,800
10.4
$1.3 million. Thus, if the maximum QFOBI deduction of $675,000
4,040,000
5,040,000
290,800
11.2
is claimed, the applicable exclusion amount would be limited to
5,040,000
6,040,000
402,800
12.0
$625,000, and the credit entered on line 11 would be $202,050.
6,040,000
7,040,000
522,800
12.8
7,040,000
8,040,000
650,800
13.6
If the amount of the QFOBI deduction is less than $675,000, increase
8,040,000
9,040,000
786,800
14.4
the applicable exclusion amount by the difference between $675,000
9,040,000
10,040,000
930,800
15.2
and the amount of the QFOBI deduction (but not to exceed the maxi-
10,040,000
—
1,082,800
16.0
mum applicable exclusion amount in effect for the year of death).
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Have questions? See “Taxpayer assistance.”
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