Instructions For Form 706 - 2016 Page 26

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jointly-owned. Solely owned partnership
included in the gross estate if you can
savings account (HSA), unless such
interests should be reported on
show that any part of the property was
interest passes to the surviving spouse;
Schedule F, “Other Miscellaneous
acquired with consideration originally
and
Property Not Reportable Under Any
belonging to the surviving joint tenant or
Insurance on the life of another
Other Schedule.”
tenants. In this case, you may exclude
(obtain and attach Form 712, for each
from the value of the property an
policy).
Part 1. Qualified joint interests held
amount proportionate to the
by decedent and spouse. Under
Note (for single premium or paid-up
consideration furnished by the other
section 2040(b)(2), a joint interest is a
policies). In certain situations (for
tenant or tenants. Relinquishing or
qualified joint interest if the decedent
example, where the surrender value of
promising to relinquish dower, curtesy,
and the surviving spouse held the
the policy exceeds its replacement
or statutory estate created instead of
interest as:
cost), the true economic value of the
dower or curtesy, or other marital rights
Tenants by the entirety, or
policy will be greater than the amount
in the decedent's property or estate is
Joint tenants with right of survivorship
shown on line 59 of Form 712. In these
not consideration in money or money's
if the decedent and the decedent's
situations, report the full economic value
worth. See the Schedule A instructions
spouse are the only joint tenants.
of the policy on Schedule F. See Rev.
for the value to show for real property
Interests that meet either of the two
Rul. 78-137, 1978-1 C.B. 280 for details.
that is subject to a mortgage.
requirements above should be entered
Section 2044 property (see Decedent
If the property was acquired by the
in Part 1. Joint interests that do not meet
Who Was a Surviving Spouse, later);
decedent and another person or
either of the two requirements above
Claims (including the value of the
persons by gift, bequest, devise, or
should be entered in Part 2.
decedent's interest in a claim for refund
inheritance as joint tenants, and their
Under “Description,” describe the
of income taxes or the amount of the
interests are not otherwise specified by
property as required in the instructions
refund actually received);
law, include only that part of the value of
for Schedules A, B, C, and F for the type
Rights;
the property that is figured by dividing
of property involved. For example,
Royalties;
the full value of the property by the
jointly held stocks and bonds should be
Leaseholds;
number of joint tenants.
described using the rules given in the
Judgments;
If you believe that less than the full
instructions to Schedule B.
Reversionary or remainder interests;
value of the entire property is includible
Shares in trust funds (attach a copy of
Under “Alternate value” and “Value at
in the gross estate for tax purposes, you
the trust instrument);
date of death,” enter the full value of the
must establish the right to include the
Household goods and personal
property.
smaller value by attaching proof of the
effects, including wearing apparel;
extent, origin, and nature of the
Note. You cannot claim the special
Farm products and growing crops;
decedent's interest and the interest(s) of
treatment under section 2040(b) for
Livestock;
the decedent's co-tenant or co-tenants.
property held jointly by a decedent and
Farm machinery; and
In the “Includible alternate value” and
a surviving spouse who is not a U.S.
Automobiles.
“Includible value at date of death”
citizen. Report these joint interests on
Interests. If the decedent owned any
columns, enter only the values that you
Part 2 of Schedule E, not Part 1.
interest in a partnership or
believe are includible in the gross
Part 2. All other joint interests. All
unincorporated business, attach a
estate.
joint interests that were not entered in
statement of assets and liabilities for the
Schedule F—Other
Part 1 must be entered in Part 2.
valuation date and for the 5 years before
the valuation date. Also, attach
Miscellaneous Property
For each item of property, enter the
statements of the net earnings for the
appropriate letter A, B, C, etc., from
same 5 years. Be sure to include the
If any assets to which the
line 2a to indicate the name and
EIN of the entity. You must account for
special rule of Regulations
address of the surviving co-tenant.
!
goodwill in the valuation. In general,
section 20.2010-2(a)(7)(ii)
Under “Description,” describe the
CAUTION
furnish the same information and follow
applies are reported on this schedule,
property as required in the instructions
the methods used to value close
do not enter any value in the last three
for Schedules A, B, C, and F for the type
corporations. See the instructions for
columns. See instructions for line 10 of
of property involved.
Schedule B.
Part 5–Recapitulation for information on
In the “Percentage includible”
how to estimate and report the value of
All partnership interests should be
column, enter the percentage of the
these assets.
reported on Schedule F unless the
total value of the property included in
partnership interest, itself, is
the gross estate.
You must complete Schedule F
jointly-owned. Jointly-owned
Generally, you must include the full
and file it with the return.
partnership interests should be reported
value of the jointly-owned property in
on Schedule E.
On Schedule F, list all items that must
the gross estate. However, the full value
If real estate is owned by a sole
be included in the gross estate that are
should not be included if you can show
proprietorship, it should be reported on
not reported on any other schedule,
that a part of the property originally
Schedule F and not on Schedule A.
including:
belonged to the other tenant or tenants
Debts due the decedent (other than
Describe the real estate with the same
and was never received or acquired by
notes and mortgages included on
detail required for Schedule A.
the other tenant or tenants from the
Schedule C);
decedent for less than adequate and full
Valuation discounts. If you
Interests in business;
consideration in money or money's
answered “Yes,” to Part 4—General
Any interest in an Archer medical
worth. Full value of jointly-owned
Information, line 11b for any interest in a
savings account (MSA) or health
property also does not have to be
partnership, an unincorporated
-26-
Part Instructions

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