Form It-1 And Instructions - Inheritance Tax

Line 16. Proration of state death tax

• Tax x Annual interest rate x Number of full years.

• Tax x Monthly interest rate x Number of months.

When the estate has property located in other states, com-

• Tax x Daily interest rate x Number of days.

plete lines 16a, 16b, and 16c.

For periods beginning

Annual

Monthly

Daily

16a. Gross value of property taxable by Oregon

January 1, 2004

0.5000% 0.0164%

January 1, 2005

0.4167% 0.0137%

Enter the gross value of property taxable by Oregon. Prop-

erty taxable for Oregon purposes depends on whether the

Additional interest on deficiencies and delinquencies. In-

decedent was a resident or nonresident. Please highlight the

terest will increase by one-third of 1 percent per month (4

Oregon property on the attached schedules.

percent yearly) on deficiencies or delinquencies if the follow-

ing occurs:

• Resident decedent. For a resident decedent, property tax-

able by Oregon includes real property and tangible per-

• You file a return showing tax due, or the Department of

sonal property located in Oregon and intangible personal

Revenue has assessed an existing deficiency; and

property wherever located.

• The assessment is not paid within 60 days after the notice

• Nonresident decedent. For a nonresident decedent, prop-

of assessment is issued; and

erty taxable by Oregon includes real property and tangible

• You have not filed a timely appeal.

and intangible personal property located in Oregon. An

Special instructions. Do you owe penalty on line 21 or in-

exemption is allowed for intangible personal property lo-

terest on line 22 and have an overpayment on line 20? If your

cated in Oregon if a like exemption is allowed by the state

overpayment is less than the total penalty and interest, you

of residence.

have an amount due. To calculate the amount due, fill in on

line 23 the result of line 21 plus line 22 minus line 18. If your

16b. Gross value of all property wherever situated

overpayment is more than the total penalty and interest, to

Enter the amount of the gross estate (Form IT-1, Part 2, line 1).

calculate your refund, enter on line 24 the result of line 18

minus the sum of line 21 plus line 22.

16c. Oregon percentage

Divide the amount on line 16a by the amount on line 16b.

Line 23. Total due

You should round the decimal amount to four places. Write

Enclose a check or money order with your return and pay-

the percentage on line 16c. Don’t fill in more than 100 per-

ment voucher, payable to “Oregon Department of Rev-

cent or less than -0-.

enue.” Please use blue or black ink. Do not use any other

Example:

colors of ink. Write “2004 Oregon Inheritance Tax” on your

check. Do not send cash or postdated checks.

Line 16a

Line 16b

Line 16c

$800,000 ÷ $900,000 = 0.8888

[Round to 0.8889 (88.89%)]

Instructions for Part 3: Elections by the

Line 18. Amount paid by the due date of the return

executor

(page 2 of Form IT-1)

For an original Form IT-1, enter the total of prior timely pay-

ments. If this is for an amended return, please enter the net

Line 1. Alternate valuation

payments (prior payments less prior refunds) to date.

Unless you elect at the time you file the return, to adopt al-

ternate valuation as authorized by Section 2032, you must

Line 21. Penalty due

value all property included in the gross estate on the date

A penalty of 5 percent of the tax may be imposed if the tax

of the decedent’s death. Alternate valuation cannot be ap-

is not paid and/or the return is not filed within nine months

plied to only a part of the property.

from the date of death or by the extended due date. If you

You may elect special use valuation (line 2) in addition to

file more than 3 months after the due date (including exten-

alternate valuation.

sion), please add an additional 20 percent penalty.

You may not elect alternate valuation unless the election will

Line 22. Interest due

decrease both the value of the gross estate and the total net

estate and taxes due after application of all allowable credits.

If you are filing or paying after the due date, please include

interest on any unpaid tax. An interest period is each full

You elect alternate valuation by checking “Yes” on line 1 and

filing Form IT-1. Once made, the election may not be re-

month starting with the day after the due date. For example,

April 16 to May 15 is a full month and interest period. In-

voked. The election may be made on a late filed Form IT-1

provided it is not filed later than 1 year after the due date

terest is figured daily for periods of less than a month. In-

terest accrues on any unpaid tax during an extension of time

(including extensions).

to file. Here’s how to calculate the interest due:

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Form It-1 And Instructions - Inheritance Tax - 2004 Page 7

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