Instructions For Form M706 - Estate Tax - Minnesota Department Of Revenue - 2017


2017 Estate Tax Form M706 Instructions
For estates of decedents whose dates of death are in calendar year 2017
What’s New for 2017
Filing Requirements
Estate Tax Exclusion and Filing Require-
If the decedent was a resident of Minnesota
You can find forms and information, includ-
at the time of death, the estate is required to
The exclusion amount and filing requirement
file Form M706 if the federal gross estate
ing answers to frequently asked questions
for the estate tax are rising incrementally for
plus federal adjusted taxable gifts made
and options for paying electronically, on our
tax years 2017 to 2020. For 2017 decedents,
within three years of the decedent’s death
website at:
the exclusion amount and tax filing thresh-
exceeds $2,100,000 on the date of death or
old were increased from $1.8 million to $2.1
if the estate is required to file a federal estate
million. The exclusion amount is subtracted
tax return.
Send us an email at:
on Form M706, Line 6a.
If the decedent was a nonresident of Min-
The maximum combined qualified small
nesota, the estate is required to file Form
business property and farm property deduc-
M706 if property with situs in Minnesota is
Call us at:
tion is decreasing each year as the exclusion
included in the federal gross estate and the
amount increases. However, the sum of
federal gross estate plus federal adjusted
the exclusion and the maximum combined
taxable gifts made within three years of the
Weekdays, 8 a.m. to 4:30 p.m.
qualified deduction) will remain at $5 mil-
decedent’s death exceeds $2,100,000 on the
date of death or if the estate is required to
file a federal estate tax return.
Or write to:
Tax Rates
Minnesota Revenue
For 2017 decedents the estate tax rate ranges
The federal gross estate is determined by
Mail Station 1315
from 12% to 16%.
completing the federal Form 706 (see page
4). The federal adjusted taxable gifts are
St. Paul, MN 55146-1315
Resident and Domicile Definition
defined in section 2001(b) of the Internal
The definition of a resident decedent has
Revenue Code.
Forms You May Need
been modified. For details about determining
domicile, visit our website at
(M.S. 289A.10, subd. 1)
Estate Tax Return and search Individual Income
Who Must File?
M706Q Election to Claim the Qualified
Tax Domicile.
Small Business and Farm Property
If the decedent’s estate is being probated,
Recapture Tax Changes
the Probate Court or Probate Registrar will
Estates that claim the qualified small busi-
appoint someone as personal representative
Need Forms?
ness property or qualified farm property
— also called executor or administrator —
deduction are subject to a three-year holding
Go to to down-
of the decedent’s estate. That person is then
period. If the qualified heirs do not meet cer-
responsible for filing Form M706 for the
load forms and other information, including:
tain requirements during this time, the estate
• Estate Tax Fact Sheet 2, Qualified Small
is subject to a Recapture Tax.
In some cases, the Probate Court or Probate
Business Property and QualifiedFarm
New exceptions have been added for
Registrar will appoint more than one person
Property Deduction
qualified farm property during the three-year
as executor. In such cases, all persons who
• Revenue Notice regarding the alternative
holding period. None of the following situa-
have been appointed as executors are jointly
tions will trigger the Recapture Tax:
value, special use valuation and adminis-
responsible for filing the return.
trative deductions
• The farm property is acquired by a gov-
If the estate is not being probated, all per-
ernmental unit through eminent domain
We’ll provide information in another format
sons who will receive assets included in the
for a public purpose.
upon request to persons with disabilities.
decedent’s federal gross estate (line 1 of fed-
• Part of the farm property (less than 1/5
eral Form 706) are responsible for filing the
of the claimed acreage) is reclassified
Minnesota return. If more than one person
for property taxes from 2a (agricultural)
General Information . . . . . . . . . . . . . . 1–4
will receive the assets, all persons receiving
to 2b (rural vacant land), as long as
Filing and Paying Requirements . . . . 1–2
the assets should choose a mutually agree-
the qualified heir has not substantially
Due Dates and Payment Options . . . . . 2
able person among them to file the estate
altered the property.
Line Instructions . . . . . . . . . . . . . . . . . . 4–6
tax returns. If one person cannot be agreed
• Part of the farm property (consisting of
Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . 5
on, each person must file a Minnesota return
a residence, garage, and up to 1 acre of
Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . .7
for the decedent’s estate. Each person must
land) is reclassified for property taxes
Mailing Label . . . . . . . . . . . . . . . . . . . . . . 7
include on the return not only the assets he
from 2a (agricultural) to 4bb (residential
or she is receiving, but also all of the dece-
dent’s assets being received by other persons
The exceptions apply retroactively to the
and the names of the other persons.
estates of all decedents dying after June 30,
(M.S. 289A.10 and M.S. 291.12)


00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Page of 7