Form Et-501 - Generation-Skipping Transfer Tax Return For Terminations Page 3
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4ET-501 (3/14) Page 3 of 4
Instructions
General information
Specific instructions
The New York State generation‑skipping transfer (GST) tax is based on
You must submit a completed federal Form 706‑GS(T), including all
the credit for state GST taxes allowed against the federal GST tax prior
Schedules A, with your Form ET‑501.
to the changes made by the federal Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA).
When calculating the inclusion ratio, it is necessary to do a separate
calculation for the New York State GST tax because it does not conform
The New York State GST tax applies only to taxable distributions
to the federal GST exemption amounts for transfers made to a trust
and taxable terminations from a trust to a skip person on or before
after 2003. The trustee must calculate the inclusion ratio for each
March 31, 2014, if the trust includes New York property. The distribution
termination, and different inclusion ratios must be shown on separate
or termination has to occur at the same time as, and as a result of,
federal Form 706‑GS(T) Schedules A.
the death of an individual. The New York State GST tax rate is 2.75%
(5% of the federal GST tax rate of 55%, that was in effect in 2001). Use
Form ET‑500 for distributions and Form ET‑501 for terminations. The
Schedule A – Computation of maximum state
New York State GST tax does not apply to direct skips.
generation-skipping transfer tax credit
Column A – Describe the property subject to the termination. Use
The New York State GST tax has been repealed and does not apply to
multiple lines for more than one property. If you were required to
distributions and transfers that take place on or after April 1, 2014.
complete more than one federal Form 706‑GS(T), Schedule A, you may
identify each property by its Schedule A number.
Purpose of form
A trustee uses Form ET‑501 to calculate and report the New York State
Column B – Enter the date the property was transferred to the trust.
GST tax due on taxable terminations of a trust. For New York State
Column C – If the property was transferred to the trust prior to 2004,
GST tax purposes, taxable terminations are terminations:
use the federal GST exemption amount. For transfers after 2003, use
– of a trust to a skip person (other than direct skips);
the following table for calculating the inclusion ratio for the New York
– subject to the federal GST tax (or that would be except for the
State GST in place of the federal exemption amount. If less than the full
changes made by EGTRRA); and
federal GST exemption was allocated to the trust, attach an explanation
showing the allocation and how you recalculated the NYS GST
– that occur at the same time as, and as a result of, the death of an
exemption (applicable fraction numerator limit).
individual.
Payment of tax
Year of transfer
NYS GST exemption
(applicable fraction numerator limit)
New York State GST tax becomes due and payable April 15 of the year
following the calendar year in which the termination occurred.
2004
$1,140,000
Make the check or money order payable in U.S. funds to
2005
$1,170,000
Commissioner of Taxation and Finance. Write the trust’s name,
trust’s employer identification number (EIN), and Generation‑skipping
2006
$1,200,000
transfer tax on the check or money order to help us process the
2007
$1,250,000
payment.
2008
$1,280,000
Who must file
2009
$1,330,000
In general, the trustee of any trust that had a taxable termination on or
2010
$1,340,000
before March 31, 2014, must file Form ET‑501.
2011
$1,360,000
When to file
2012
$1,390,000
You must file Form ET‑501 on or after January 1, but no later than
April 15, of the year following the calendar year in which the termination
2013
$1,430,000
occurred.
2014
$1,450,000
Extensions of time to file
Column D – Enter the amount of the fair market value of the property
If you know that you cannot meet the filing deadline, request an
at the time the property was transferred to the trust.
extension of time to file by writing to the following address:
Column E – Calculate the inclusion ratio. The inclusion ratio is the
NYS TAX DEPARTMENT
excess of one over the applicable fraction with the numerator as the
ESTATE TAX PRoCESSING
amount in column C and the denominator as the amount in column D.
W A HARRIMAN CAMPUS
Round the inclusion ratio to three decimal places.
ALBANY NY 12227-0862
The time to file will be automatically extended six months if the letter is
Column F – NYS GST tax rate (.0275).
sent by April 15. Note: Filing a request for an extension of time to file
does not extend the time for payment of tax. See Payment of tax above.
Column G – Multiply column E by column F to calculate the NYS
applicable tax rate.
Where to file
Column H – Taxable terminations from federal Form 706‑GS(T),
Mail this form and payment to:
Schedule A, line 6.
NYS TAX DEPARTMENT
Column I – Multiply column G by column H to calculate the maximum
RPC-GSTT
state GST tax credit. Enter the total on Schedule B, line 1.
W A HARRIMAN CAMPUS
ALBANY NY 12227-8451
Note: If there were transfers after 2003, New York State GST tax may
be due even if no federal GST tax was due.
Private delivery services
If you are not using U.S. Mail, be sure to consult Publication 55,
Schedule B – Computation of tax due
Designated Private Delivery Services.
Line 1 – Enter the maximum state GST tax credit from Schedule A,
column I. If the taxable termination from the trust is wholly from New
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