Form Et-501 - Generation-Skipping Transfer Tax Return For Terminations Page 3
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4ET-501 (12/13) Page 3 of 4
Instructions
General information
When calculating the inclusion ratio, it is necessary to do a separate
The New York State generation‑skipping transfer (GST) tax is based on
calculation for the New York State GST tax because it does not conform
the credit for state GST taxes allowed against the federal GST tax prior
to the federal GST exemption amounts for transfers made to a trust
to the changes made by the federal Economic Growth and Tax Relief
after 2003. The trustee must calculate the inclusion ratio for each
Reconciliation Act of 2001 (EGTRRA).
termination, and different inclusion ratios must be shown on separate
federal Form 706‑GS(T) Schedules A.
The New York State GST tax applies to taxable distributions and
taxable terminations from a trust to a skip person, if the trust includes
New York property. The distribution or termination has to occur at the
Schedule A – Computation of maximum state
same time as, and as a result of, the death of an individual. The New
generation-skipping transfer tax credit
York State GST tax rate is 2.75% (5% of the federal GST tax rate of
Column A – Describe the property subject to the termination. Use
55%, that was in effect in 2001). Use Form ET‑500 for distributions and
multiple lines for more than one property. If you were required to
Form ET‑501 for terminations. The New York State GST tax does not
complete more than one federal Form 706‑GS(T), Schedule A, you may
apply to direct skips.
identify each property by its Schedule A number.
Column B – Enter the date the property was transferred to the trust.
Purpose of form
A trustee uses Form ET‑501 to calculate and report the New York State
Column C – If the property was transferred to the trust prior to 2004,
GST tax due on taxable terminations of a trust. For New York State
use the federal GST exemption amount. For transfers after 2003, use
GST tax purposes, taxable terminations are terminations:
the following table for calculating the inclusion ratio for the New York
State GST in place of the federal exemption amount. If less than the full
– of a trust to a skip person (other than direct skips);
federal GST exemption was allocated to the trust, attach an explanation
– subject to the federal GST tax (or that would be except for the
showing the allocation and how you recalculated the NYS GST
changes made by EGTRRA); and
exemption (applicable fraction numerator limit).
– that occur at the same time as, and as a result of, the death of an
individual.
Year of transfer
NYS GST exemption
(applicable fraction numerator limit)
Payment of tax
2004
$1,140,000
New York State GST tax becomes due and payable April 15 of the year
following the calendar year in which the termination occurs.
2005
$1,170,000
Make the check or money order payable in U.S. funds to
2006
$1,200,000
Commissioner of Taxation and Finance. Write the trust’s name,
trust’s employer identification number (EIN), and Generation‑skipping
2007
$1,250,000
transfer tax on the check or money order to help us process the
2008
$1,280,000
payment.
2009
$1,330,000
Who must file
2010
$1,340,000
In general, the trustee of any trust that has a taxable termination must
2011
$1,360,000
file Form ET‑501.
2012
$1,390,000
When to file
2013
$1,430,000
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
Column D – Enter the amount of the fair market value of the property
occurred.
at the time the property was transferred to the trust.
Extensions of time to file
Column E – Calculate the inclusion ratio. The inclusion ratio is the
If you know that you cannot meet the filing deadline, request an
excess of one over the applicable fraction with the numerator as the
extension of time to file by writing to the following address:
amount in column C and the denominator as the amount in column D.
Round the inclusion ratio to three decimal places.
NYS TAX DEPARTMENT
ESTATE TAX PRoCESSING
Column F – NYS GST tax rate (.0275).
W A HARRIMAN CAMPUS
ALBANY NY 12227
Column G – Multiply column E by column F to calculate the NYS
applicable tax rate.
The time to file will be automatically extended six months if the letter is
sent by April 15. Note: Filing a request for an extension of time to file
Column H – Taxable terminations from federal Form 706‑GS(T),
does not extend the time for payment of tax. See Payment of tax above.
Schedule A, line 6.
Where to file
Column I – Multiply column G by column H to calculate the maximum
state GST tax credit. Enter the total on Schedule B, line 1.
Mail this form and payment to:
NYS GENERATIoN-SKIPPING TRANSFER TAX
Note: If there were transfers after 2003, New York State GST tax may
be due even if no federal GST tax was due.
PRoCESSING CENTER
Po BoX 15167
ALBANY NY 12212-5167
Schedule B – Computation of tax due
Line 1 – Enter the maximum state GST tax credit from Schedule A,
Private delivery services
column I. If the taxable termination from the trust is wholly from New
If you are not using U.S. Mail, be sure to consult Publication 55,
York property (see definition below), skip lines 2, 3, and 4 and enter the
Designated Private Delivery Services.
amount from line 1 on line 5.
Specific instructions
Line 2 – If the taxable termination from the trust included non‑New York
property, enter the value (on the date of termination) of the New York
You must submit a completed federal Form 706‑GS(T), including all
property included in the termination.
Schedules A, with your Form ET‑501.
(continued)
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