Instructions For Form 706 - 2016 Page 22
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54Does the notice of election
Does the notice of election
Has the agreement been signed
describe the items of real
include a statement as to
by each qualified heir having an
property shown on the estate tax
whether there were any periods
interest in the property being
return that are to be specially
during the 8-year period
specially valued?
valued and identify the property
preceding the decedent's date of
by the Form 706 schedule and
death during which the decedent
Has every qualified heir
item number?
or a member of his or her family
expressed consent to personal
did not (a) own the property to be
liability under section 2032A(c)
specially valued, (b) use it in a
Does the notice of election
in the event of an early
qualified use, or (c) materially
include the FMV of the real
disposition or early cessation of
participate in the operation of the
property to be specially valued
qualified use?
farm or other business? (See
and also include its value based
section 2032A(e)(6).)
on the qualified use (determined
Is the agreement that is actually
without the adjustments provided
signed by the qualified heirs in a
in section 2032A(b)(3)(B))?
Does the notice of election
form that is binding on all of the
include, for each item of specially
qualified heirs having an interest
valued property, the name of
Does the notice of election
in the specially valued property?
every person who has an interest
include the adjusted value (as
in that item of specially valued
defined in section 2032A(b)(3)
Does the agreement designate
property and the following
(B)) of (a) all real property that
an agent to act for the parties to
information about each such
both passes from the decedent
the agreement in all dealings
person: (a) the person's address,
and is used in a qualified use,
with the IRS on matters arising
(b) the person's taxpayer
without regard to whether it is to
under section 2032A?
identification number, (c) the
be specially valued, and (b) all
person's relationship to the
real property to be specially
Has the agreement been signed
decedent, and (d) the value of
valued?
by the designated agent and
the property interest passing to
does it give the address of the
that person based on both FMV
Does the notice of election
agent?
and qualified use?
include (a) the items of personal
property shown on the estate tax
Does the notice of election
return that pass from the
Schedule B—Stocks and
include affidavits describing the
decedent to a qualified heir and
Bonds
activities constituting material
that are used in qualified use and
participation and the identity of
(b) the total value of such
If any assets to which the
the material participants?
personal property adjusted under
special rule of Regulations
!
section 2032A(b)(3)(B)?
section 20.2010-2(a)(7)(ii)
CAUTION
Does the notice of election
applies are reported on this schedule,
include a legal description of
Does the notice of election
do not enter any value in the last three
each item of specially valued
columns. See instructions for line 10 of
include the adjusted value of the
Part 5–Recapitulation for information on
property?
gross estate? (See section
how to estimate and report the value of
2032A(b)(3)(A).)
these assets.
(In the case of an election made for
Does the notice of election
qualified woodlands, the information
Before completing Schedule B,
include the method used to
included in the notice of election
see the examples illustrating the
TIP
determine the special-use value?
must include the reason for
alternate valuation dates being
entitlement to the Woodlands
adopted and not being adopted, later.
election.)
Does the notice of election
If the total gross estate contains any
include copies of written
stocks or bonds, you must complete
appraisals of the FMV of the real
Schedule B and file it with the return.
property?
Any election made under section
On Schedule B, list the stocks and
2032A will not be valid unless a properly
bonds included in the decedent's gross
executed agreement (Schedule A-1,
Does the notice of election
estate. Number each item in the
Part 3) is filed with the estate tax return.
include a statement that the
left-hand column.
To ensure that the agreement satisfies
decedent and/or a member of his
the requirements for a valid election,
or her family has owned all of the
Note. Unless specifically exempted by
use the following checklist:
an estate tax provision of the Code,
specially valued property for at
bonds that are exempt from federal
least 5 years of the 8 years
income tax are not exempt from estate
immediately preceding the date
tax. You should list these bonds on
of the decedent's death?
Schedule B.
-22-
Part Instructions
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial