Election to Claim the Qualified Small
2012 M706Q
Business and Farm Property Deduction 2012
To be completed by the executor of the estate with a date of death after June 30, 2011, and qualified heirs.
Decedent’s first name, middle initial
Last name
Decedent’s Social Security number
Last home address (street, apartment, route)
Date of death (must be after June 30, 2011)
City
State
Zip code
Minnesota probate county and file number
Executor’s first name, middle initial
Last name
Executor’s Social Security number
Name of firm (if applicable)
Executor’s phone
Address (street, apartment, route)
City
State
Zip code
Part 1 — Qualified Small Business Property Requirements
Complete Part 1 to determine if the estate meets the qualified small business property requirements. If the answer is “No” for any of
the questions, the estate is not eligible to claim the small business property deduction.
1 Is the value of the property included in the decedent’s federal adjusted taxable estate, which
is after federal allowable deductions, including debts, expenses and bequests to a surviving spouse? . . . . . . 1
Yes
No
2 Does the property consist of assets of a trade or business (or shares of stock or other ownership interests
in a corporation or other entity that is engaged in a trade or business and is not publicly traded)? . . . . . . . . . . 2
Yes
No
3 Did the decedent or the decedent’s spouse materially participate in
the trade or business during the taxable year that ended before the decedent’s death? . . . . . . . . . . . . . . . . . . 3
Yes
No
4 Did the trade or business have gross annual sales of $10 million or less
during the last taxable year that ended before the decedent’s death? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Yes
No
5 Did the decedent continuously own the property for
the three-year period ending at the decedent’s death?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Yes
No
If you answered yes to all of the Part 1 questions, the estate may be eligible to claim the small business property deduction.
Complete Part 3 to determine if the estate has qualified heirs.
Part 2 — Qualified Farm Property Requirements
Complete Part 2 to determine if the estate meets the qualified farm property requirements. If the answer is “No” for any of the ques-
tions, the estate is not eligible to claim the farm property deduction.
6 Is the value of the property included in the decedent’s federal adjusted taxable estate, which
is after federal allowable deductions, including debts, expenses and bequests to a surviving spouse? . . . . . . 6
Yes
No
7 Does the property consist of a farm meeting the requirements of M.S. 500.24? . . . . . . . . . . . . . . . . . . . . . . . . . 7
Yes
No
8 Was the property classified for property tax purposes as the homestead of the decedent and/or the
decedent’s spouse under M.S. 273.124? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Yes
No
9 Was the property classified for property tax purposes as class 2a property under M.S. 273.13, subd. 23? . . . 9
Yes
No
10 Did the decedent continuously own the property for
the three-year period ending at the decedent’s death?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Yes
No
If you answered yes to all of the Part 2 questions, the estate may be eligible to claim the farm property deduction. Complete Part 3 to
determine if the estate has qualified heirs.