Instructions For Form M706 - Estate Tax - Minnesota Department Of Revenue - 2016 Page 5
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7Line Instructions
(continued)
Line 12
2016 Rate Table - Use to Determine line 10
Nonresident Decedent Tax Credit
The credit is for nonresident decedents who
If line 9 is:
Enter on line 10 of Form M706:
reported in the gross estate real or tangible
personal property owned by the decedent
but
of the
through a pass-through entity.
over
not over
amount over
Determine the amount of Line 12 by
$0
$1,600,000
$0
entering the lesser of the following two
values:
$1,600,000
2,600,000
0
+
10.0%
1,600,000
(1) The amount of estate or inheritance tax
paid to another state that is attributable to
2,600,000
6,100,000
100,000
+
12.0%
2,600,000
property with Minnesota situs held in the
6,100,000
7,100,000
520,000
+
12.8%
6,100,000
pass-through entity; or
(2) The amount of tax due (before credits)
7,100,000
8,100,000
648,000
+
13.6%
7,100,000
attributable to the property with Minnesota
situs held in the pass-through entity.
8,100,000
9,100,000
784,000
+
14.4%
8,100,000
To determine the amount of tax attributable
9,100,000 10,100,000
928,000
+
15.2%
9,100,000
to property with Minnesota situs held
in the pass-through entity, the estate
10,100,000
—
1,080,000
+
16.0%
10,100,000
must determine the amount the estate or
inheritance tax that was increased as a
result of including the market value of the
property in the estate or treating the value
as a taxable inheritance to the recipient of
Worksheet B – To Determine Line 11
the property.
Step 1 – Minnesota Gross Estate
From the federal estate tax return, add the gross value of each item of the decedent’s real
The lesser of the two values is $0 when:
and tangible personal property located in Minnesota. If the decedent is a resident of
•
The decedent was a Minnesota resident;
Minnesota, include all intangible personal property.
•
The decedent was a nonresident and the
A nonresident decedent who owns an interest in a pass-through entity that has real or
estate tax return did not report property
tangible personal property located or normally kept in Minnesota must include that real
with Minnesota situs held in a pass-
or tangible personal property on step 1 of Worksheet B. Pass-through entities include S
through entity; or
corporations, partnerships, limited liability companies, and trusts. A pass-through entity
•
The decedent was a nonresident and the
excludes securities traded on an exchange regulated by the SEC.
estate tax return did not pay any estate
Step 2 – Gifts of Property with Minnesota Situs
or inheritance tax to another state that is
From those federal taxable gifts included on Line 2b on page 1 of the M706, add the
attributable to property with Minnesota
gross value of each real or tangible item of personal property located in Minnesota at the
situs held in a pass-through entity.
time the gift was executed. If the decedent was a resident of Minnesota at the time of the
Lines 14–20
gift, include intangible personal property.
Line 14
Step 7 – Ratio
Payments Previously Made
When dividing step 3 by step 6, round the result to five decimal places and enter on step
If — before you filed this return — you paid
7. Multiply the ratio on step 7 by the amount on line 10 of page 1 of Minnesota Form
Minnesota estate tax, enter the amount
M706. Enter that result on line 11 of page 1 of Form M706.
you’ve already paid, including any extension
payment made electronically or when filing
with a payment voucher.
Late filing. If you file after the extended fil-
Late payment. A penalty is due if you don’t
ing due date and you owe tax, you must pay
pay the total Minnesota estate tax by the
Line 16
an additional penalty for filing late. The late
regular payment due date. The penalty is 6
Penalties
filing penalty is 5 percent of the unpaid tax.
percent of the unpaid tax.
The regular due date for filing the Minne-
Extended delinquency. An additional
If you file your Minnesota estate tax return
sota estate tax return and paying the total
penalty is due if the return is not filed
after the regular filing due date and you
estate tax owed is nine months after the
within 30 days after the department sends a
don’t pay the tax as reported on your return
decedent’s date of death. If the return is filed
written demand. The penalty is 5 percent of
at the time you file, an additional 5 percent
after the extended filing due date or the tax
the tax not paid prior to the demand.
late payment penalty is due on the unpaid
is paid after the regular payment due date,
tax.
the estate is subject to penalties.
(M.S. 289A.60, subd. 2a)
Continued
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