Form Ar321 - Estate Tax Return - 2004 Page 2
ADVERTISEMENT
1
2GENERAL INFORMATION
I.
Under the provisions of Act 388 of the Acts of the 1947 General Assembly of Arkansas, the State of Arkansas levies an estate tax on estates of
resident and nonresident decedents. In the case of resident decedents, the amount of tax due the State of Arkansas is equal to the Federal Credit
Allowable for State Death Taxes as determined by Table B of the United States Estate Tax (reproduced here). The amount thus determined is the
Arkansas Estate Tax. This tax is item 5b on the Arkansas Estate Tax Return Form.
II.
In the case of the estate of a resident or a nonresident who dies having real property and/or tangible personal property located in a state other
than Arkansas, the Arkansas tax due shall be a percentage of the Federal Credit Allowable for State Death Taxes in the same proportion which
the amount of Arkansas property bears to the total property of the estate. The tax is item 10 on the Arkansas Estate Tax Return Form.
III.
In all instances of estates required to file a Federal Return with assets totally or in part in Arkansas, an Arkansas Estate Tax Return shall be filed
with the Director of the Department of Finance and Administration nine (9) months after the date of the decedent’s death. A copy of the Federal
Return may be filed in lieu of the Arkansas Return herein specified.
IV.
No Estate Tax Return need be filed with the Director of the Department of Finance and Administration of this State unless a Federal Estate Tax
Return is required to be filed under the Federal law. If a request is made for a release for real estate, however, an Arkansas Estate Tax Return will
be required.
V.
Upon payment to the Director by the taxpayer (executor or administrator of the estate) the amount due this State, there shall be issued to said
taxpayer a receipt of such payment in accordance with the requirements of the Federal agents for obtaining the proper credit on said Federal tax.
Upon receipt of a copy of the Federal closing letter, the State of Arkansas will issue an Arkansas estate closing letter.
VI.
Interest on unpaid Arkansas Estate Tax accrues at ten percent (10%) per annum beginning nine (9) months from the date of death.
VII.
Arkansas has no inheritance or gift tax.
INSTRUCTIONS FOR COMPLETION OF AR321
Executor’s Social Security Number – Only individual executors should complete this Line. If there is more than one individual executor, all should list their
Social Security Numbers on an attached sheet.
Line 1: Total gross value of all assets of the decedent (i.e. real estate, stocks and bonds, mortgages, notes and cash, insurance on decedent’s Life,
jointly owned property, other miscellaneous property, transfers during decedent’s life, powers of appointment, and annuities) from Part 5,
Recapitulation, page 3, Item 12 of the Federal Return.
Line 2: Allowable deductions, from Part 5, Recapitulation, page 3, Item 22 of the Federal Return.
Line 3: Subtract Line 2 from Line 1 and enter on Line 3.
Line 4: Subtract $60,000 from the amount on Line 3 and enter remainder on Line 4.
Line 5: Use the Table below to compute Credit for State Death Taxes. Multiply the amount by .25 and enter on Line 5. (Amount should not exceed the
amount entered on Line 13, Page 1 of the Federal Return).
Line 6 through Line 10: Complete only when decedent owned property is located in more than one state. If any portion of the property is located in
another state(s), and the other state(s) participates in the Federal Credits Allowable, then the Arkansas tax shall be a percentage of the Federal
Credit Allowable for State Death Taxes in the same proportion which the amount of Arkansas property bears to the total property of the estate,
provided that the other state(s) has a reciprocal provision as to nontaxability of property of nonresidents. In the event the other state(s) does not
have a reciprocal provision, all Federal Credit Allowable shall be paid to the State of Arkansas.
The formula to use in computing the pro-rata portion of the Federal Credit Allowable due to the State of Arkansas is contained on Line 10.
Federal Schedules pertinent to Arkansas Property must be attached to this return.
Computation of Maximum Credit for State Death Taxes
(Based on Federal Adjusted Taxable Estate which is the Federal Taxable Estate less $60,000.00)
1
2
3
4
1
2
3
4
Adjusted taxable
Adjusted taxable
Credit on
Rate of credit on
Adjusted taxable
Adjusted taxable
Credit on
Rate of credit on
estate equal to
estate
amount in
excess over amt.
estate equal to
estate
amount in
excess over amt.
column (1)
in column (1)
column (1)
in column (1)
or more than
less than
or more than
less than
(Percent)
(Percent)
0
$40,000
0
None
$2,040,000
$2,540,000
$106,800
8.0
$40,000
90,000
0
0.8
2,540,000
3,040,000
146,800
8.8
90,000
140,000
$400
1.6
3,040,000
3,540,000
190,800
9.6
140,000
240,000
1,200
2.4
3,540,000
4,040,000
238,800
10.4
240,000
440,000
3,600
3.2
4,040,000
5,040,000
290,800
11.2
440,000
640,000
10,000
4.0
5,040,000
6,040,000
402,800
12.0
640,000
840,000
18,000
4.8
6,040,000
7,040,000
522,800
12.8
840,000
1,040,000
27,600
5.6
7,040,000
8,040,000
650,800
13.6
1,040,000
1,540,000
38,800
6.4
8,040,000
9,040,000
786,800
14.4
1,540,000
2,040,000
70,800
7.2
9,040,000
10,040,000
930,800
15.2
10,040,000
--------------
1,082,800
16.0
AR321 (R 10/04)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial