Form M706q - Minnesota Election To Claim The Qualified Small Business And Farm Property Deduction - 2014 Page 8
Download a blank fillable Form M706q - Minnesota Election To Claim The Qualified Small Business And Farm Property Deduction - 2014 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form M706q - Minnesota Election To Claim The Qualified Small Business And Farm Property Deduction - 2014 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
82014 M706Q Instructions
(continued)
A decedent’s aunts, uncles, and cousins do
number from the federal Form 706 where
business property or qualified farm property
not qualify as family members. A decedent’s
the asset is reported. Then enter the fair
deductions. The first informational return
nieces or nephews, however, do qualify as
market value of the asset at the valuation
must be filed no earlier than 24 months and
family members.
date. This is the value included in the Fed-
no later than 26 months after the decedent’s
eral gross estate. If the estate is electing to
death. The second informational return must
A “qualified heir” means a family member
deduct only a portion of an asset reported
be filed no earlier than 36 months and no
who acquired qualified property upon the
on the federal Form 706, enter the appro-
later than 39 months after the decedent’s
death of the decedent.
priate valuation percentage that qualifies
death. (M.S. 289A.12, subd. 18)
Describe the trade or business, including
for the deduction. Subtotal all amounts as
the type of industry, and enter the six-digit
The estate is required to file a recapture tax
line 1.
NAICS code that best describes the business
return and pay a 16% recapture tax on the
Non-eligible Property. For qualified small
activities. To determine the appropriate NA-
qualified property if:
business property, complete section 2 by
ICS code, go to
• The estate elected the qualified small
entering a description of any cash, cash
www/naics/index.html. Enter a keyword to
business property or qualified farm prop-
equivalents, publicly traded securities, or
search the most recent NAICS list.
erty deduction against their estate tax on
assets not used in the operation of the trade
If a family member does not maintain the
Schedule M706Q; and
or business. Cash equivalents are short-
2a classification for the qualified property
Either:
term securities that are liquid enough to be
for the farm property deduction or a family
considered equivalent to cash. Examples in-
• For the small business property deduc-
member does not materially participate in
clude negotiable instruments, money mar-
tion, a family member did not materially
the operation of the trade or business for the
ket holdings, short-term government bonds
participate in the operation of the trade
small business property deduction during
or Treasury bills, marketable securities,
or business for three years following the
the three-year period following decedent’s
commercial paper, and other like items. For
decedent’s death,
death, a recapture tax will be imposed.
assets entered above in section 1 consist-
• For the farm property deduction, a fam-
If the qualified heirs dispose of any inter-
ing of shares of stock or other ownership
ily member did not maintain 2a property
est in the qualified property other than to a
interests in a business entity, the amount of
classification for three years following the
family member during the three years fol-
cash, cash equivalents, publically traded se-
decedent’s death; or
lowing the decedent’s death, a recapture tax
curities, or assets not used in the operation
• The qualified heirs disposed of any inter-
will be imposed.
of the trade or business held by the corpo-
est in the qualified property other than to
ration or business entity must be entered
The recapture tax is equal to 16% of the
a family member during the three years
in section 2 in proportion to the decedent’s
amount deducted by this election from the
following the decedent’s death.
share of ownership of the corporation or
Minnesota adjusted taxable estate. The re-
business entity on the date of death.
(M.S. 289A.10, subd. 1a)
capture tax and return are due no later than
six months from the date of the disqualify-
For qualified farm property, complete
The recapture tax return and tax payment
ing cessation of the trade or business or the
section 2 by entering a description of any
are due and payable within six months after
disqualifying disposition of the qualified
property other than class 2a agricultural
the date of disposition or cessation. (M.S.
property.
land (real property) or non-homestead
289A.20, subd. 3a)
property included in the values entered
(M.S. 291.03, subd. 11)
Both the informational and recapture tax re-
above in section 1.
turns are only available electronically through
If the estate answers “no” to any of the ques-
Subtotal all amounts as line 2.
the e-Services online filing system. The elec-
tions in Part 3, stop here: the estate is not
tronic returns can be found on our website at
Allowable Deductions. Complete section
eligible to claim the small business or farm
and by logging into
3 by entering a description of the Federal
property deduction. If the estate answers
e-Services.
allowable deductions that are related to the
“yes” to all questions in Part 3, the estate
assets entered above in section 1, including:
may be eligible to claim the small business
Questions?
or farm property deduction. Continue to
• marital deduction,
You can find forms and information, includ-
Part 4.
ing answers to frequently asked questions
• mortgages and liens held against the
and options for paying electronically, on our
qualifying property,
Part 4 – Agreement
website at:
To make a valid election, the agreement
• property tax payable on the qualifying
must be completed and signed by each
property, and
Send us an email at:
and every qualified heir who acquired the
• expenses and costs taken as a deduction
BusinessIncome.tax@state.mn.us
qualified property upon the death of the
used to preserve the qualifying property.
decedent. In addition, the executor of the
Call us at:
Enter the schedule and item number from
estate must sign the agreement on behalf of
651-556-3075
the federal Form 706 where the allowable
the estate.
Weekdays, 8 a.m. to 4:30 p.m.
deduction is reported. Subtotal all amounts
TTY: 711 Minnesota Relay
as line 3.
Parts 5 and 6 – Deduction
Or write to:
Calculation
Informational and Recapture Tax
Minnesota Revenue
Value of Assets. Complete section 1 by
Return Requirements
Mail Station 1315
entering a description of each asset that is
St. Paul, MN 55146-1315
The qualified heir(s) of the estate are re-
elected to be deducted as qualifying prop-
quired to file two informational returns
erty from the decedent’s Minnesota adjusted
for estates that elected the qualified small
taxable estate. Enter the schedule and item
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form M706q - Election To Claim The Qualified Small Business And Farm Property Deduction - 2017
Financial
Form M706q - Election To Claim The Qualified Small Business And Farm Property Deduction - 2016
Financial
Form M706q - Election To Claim The Qualified Small 2012 M706q Business And Farm Property Deduction - 2012
Financial
Form M706q - Election To Claim The Qualified Small 2013 M706q Business And Farm Property Deduction - 2013
Financial
Form 49e - Idaho Election To Claim The Qualified Investment Exemption From Property Tax In Lieu Of Investment Tax Credit - 2014
Financial
Form 49e - Idaho Election To Claim The Qualified Investment Exemption From Property Tax In Lieu Of Investment Tax Credit - 2013
Financial
Form 49e - Idaho Election To Claim The Qualified Investment Exemption From Property Tax In Lieu Of Investment Tax Credit - 2015
Financial
Form 49e - Idaho Election To Claim The Qualified Investment Exemption From Property Tax In Lieu Of Investment Tax Credit - 2012
Financial
Related Categories
Parent category: Financial