Fillable Form 706n - Nebraska Estate Tax Return (Page 2 of 2) in pdf

INSTRUCTIONS

or his or her successors or assigns is entitled to a refund of the amount

WHO MUST FILE. This return must be ﬁled for estates with a federal

of overpayment plus interest.

taxable estate of one million dollars or more, whether or not required to

ﬁle Federal Forms 706, 706NA, or 706-QDT, when the decedent died

Interest on refunds will be calculated at the statutory rate.

on or after July 1, 2003, and before January 1, 2007, and was a resident

SPECIFIC INSTRUCTIONS

of Nebraska, or owned real property in Nebraska, at the time of death.

Enter the name and address of the person who is to receive the

Estates of persons who died on or after January 1, 2003, but before July

certiﬁcate evidencing payment. If this space is not completed, the

1, 2003, should use Nebraska Form 706N-T. Estates of persons who died

certiﬁcate will be sent to the ﬁrst personal representative or attorney

before January 1, 2003, should use Nebraska Form 706N-1.

listed on Form 706N.

Generation-skipping transfers due to taxable distributions or taxable

List the name and address for each personal representative or

terminations made on or after July 1, 2003, and before January 1, 2007

attorney representing the estate, if appropriate. Attach a schedule if

should be reported using the Nebraska Generation-Skipping Transfer Tax

more room is needed.

Return, Form 706N-GST. Transfers made on or after January 1, 2003, but

LINE 1. Enter the amount of the federal taxable estate from Federal

before July 1, 2003, should use Nebraska Form 706N-GST-T. Transfers

Form 706, line 3c. The entire taxable estate reported on the federal

made before January 1, 2003, should use Nebraska Form 706N-GST-1.

return (or pro forma federal return if no federal return is required) must

WHEN AND WHERE TO FILE. This return is due 12 months after

be reported to Nebraska.

the date of death of the decedent. This return is to be ﬁled with the

LINE 4. TENTATIVE NEBRASKA ESTATE TAX. Use the following

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska

table to determine the tentative tax on the Nebraska taxable estate and

68509-4818.

enter on line 4:

HAVE QUESTIONS? Check our Web site: or call

Nebraska taxable estate

Of Excess

1-800-742-7474 (toll free in Nebraska and Iowa) or 1-402-471-5729.

from line 3

Over

AMOUNT OF TAX. The amount of estate tax due the state of Nebraska

At least

But less than

Tax =

begins with the greater of two amounts. The ﬁrst amount is the maxi-

100,000

5.6

100,000

500,000

5,600

6.4

100,000

mum state tax credit allowance upon the tax imposed by Chapter 11 of

500,000

1,000,000

31,200

7.2

500,000

the Internal Revenue Code. (Note: This allowance has been completely

1,000,000

1,500,000

67,200

8.0

1,000,000

phased out on the federal return for decedents with dates of death after

1,500,000

2,000,000

107,200

8.8

1,500,000

December 31, 2004.) The second amount is the Nebraska taxable estate

2,000,000

2,500,000

151,200

9.6

2,000,000

(federal taxable estate [Federal Form 706 line 3c] minus one million

2,500,000

3,000,000

199,200

10.4

2,500,000

dollars) multiplied by the tax rates in the Nebraska estate tax table — see

3,000,000

3,500,000

251,200

11.2

3,000,000

line 4 instructions. Certain adjustments are allowed as reﬂected in lines 7

3,500,000

4,000,000

307,200

12.0

3,500,000

4,000,000

5,000,000

367,200

12.8

4,000,000

through 14. The net Nebraska estate tax due as a result of these calcula-

5,000,000

6,000,000

495,200

13.6

5,000,000

tions is entered on line 15.

6,000,000

7,000,000

631,200

14.4

6,000,000

INTEREST. If the tax due as computed on line 15 of this return is not paid

7,000,000

8,000,000

775,200

15.2

7,000,000

by the prescribed due date, interest on the unpaid tax will be assessed at

8,000,000

9,000,000

927,200

16.0

8,000,000

9,000,000

1,087,200

16.8

9,000,000

the statutory rate from the due date until payment is received. The rate of

LINE 7. Enter the gross value of the transferred property located outside

interest may be adjusted on January 1 of every odd-numbered year.

Nebraska.

FEDERAL RETURNS. Attach to this return a copy of Federal Form

For a resident decedent, this is the value of real estate and tangible

706 (pages 1, 2, and 3), 706NA, or 706-QDT that was ﬁled with the

personal property located outside of Nebraska.

Internal Revenue Service. If a federal return is not required to be ﬁled, a

pro forma Federal Form 706 (pages 1, 2, and 3) should be prepared and

For a nonresident decedent, this is the entire value of his or her estate,

ﬁled with the Nebraska return.

less the value of any interest in Nebraska real estate and tangible personal

property located within Nebraska. Intangibles held in Nebraska at the

FEDERAL CLOSING LETTER. If a federal return is required to

time of a nonresident’s death are to be valued at their fair market value

be ﬁled attach a copy of the Internal Revenue Service or federal court

and included on line 7.

determination of estate tax, i.e., the federal closing letter which sets out

Residents only – If the gross value of the transferred property located

the federal estate tax liability. If the determination is unavailable, the

outside Nebraska is zero, skip to line 11 and enter zero on that line. If

box on line 1 must be checked. When the closing letter is issued by the

line 7 is greater than zero, however, complete lines 8 through 10 before

Internal Revenue Service or the federal court, a copy of the determination

proceeding to line 11. Use line 9 instructions for assistance in determining

must be ﬁled with the Nebraska Department of Revenue by the personal

the appropriate gross value amounts.

representative within ten days of receipt.

LINE 8. Enter the gross value of all transferred property within Nebraska.

CERTIFICATE EVIDENCING PAYMENT. A certiﬁcate evidencing

This includes a nonresident decedent’s interest in Nebraska real estate

payment of Nebraska estate tax will be issued after the Nebraska Estate

and tangible personal property.

Tax Return has been ﬁled and the tax paid. The Nebraska Estate Tax

Return has not been properly ﬁled until the federal closing letter (if any)

LINE 9. Enter the gross value of all transferred property. This amount is

the total gross estate reported on the federal return. This gross amount is

and certiﬁcates or receipts evidencing tax payments to other states or

political subdivisions have been provided.

prior to any adjustments for expenses or any other allowable deductions

used in computing the taxable estate.

INHERITANCE TAX WORKSHEET. Attach a copy of the inheritance

LINE 14. Attach a copy of the county inheritance tax worksheet and

tax worksheet ﬁled with the appropriate Nebraska county court.

copies of receipts or certiﬁcates evidencing payment of inheritance

AMENDED RETURN. If the amount of Nebraska tax due is affected

tax.

by a change made by the Internal Revenue Service or otherwise by the

LINE 19. Attach a check or money order payable to the Nebraska

ﬁling of an amended federal return, then an amended Nebraska return

Department of Revenue for the sum reported on line 19.

must be ﬁled. Complete Form 706N, mark it “Amended” at the top of the

return, and attach a copy of the dated notice of change from the Internal

SIGNATURES. A personal representative, ﬁduciary, executor, taxpayer,

Revenue Service or a copy of the amended federal return.

trustee, attorney, or designated ﬁler of the estate must sign this return. An

attorney must indicate the state wherein currently qualiﬁed to practice

REFUND OF OVERPAYMENT. An overpayment of tax to the state

law. If another person is authorized to sign this return, there must be a

of Nebraska will be refunded upon the ﬁling of an amended return. The

power of attorney on ﬁle with the department.

claim for refund must be ﬁled with the department within four years after

the date of overpayment, or within one year of a change in the amount of

Any person who is paid for preparing this return must also sign the

federal tax due, whichever is later. The party making such overpayment

return as preparer.

Form 706n - Nebraska Estate Tax Return Page 2

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