Instructions For Form 706 - 2016 Page 41
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54Property
elapsed between the dates of death, the
additional estate tax at its FMV rather
credit allowed is 100% of the maximum
than its special-use value. On line 10 of
The term property includes any interest
amount. If more than 2 years elapsed
the worksheet, include the additional
(legal or equitable) of which the
between the dates of death, no credit is
estate tax paid as a federal estate tax
transferee received the beneficial
allowed.
paid.
ownership. The transferee is considered
the beneficial owner of property over
How To Complete the
Where transferor predeceased the
which the transferee received a general
transferee. The percent of the
Schedule Q Worksheet
power of appointment. Property does
maximum amount that is allowed as a
Most of the information to complete Part
not include interests to which the
credit depends on the number of years
I of the worksheet should be obtained
transferee received only a bare legal
that elapsed between dates of death. It
from the transferor's Form 706.
title, such as that of a trustee. Neither
is determined using the following table:
does it include an interest in property
Line 5. Enter on line 5 the applicable
over which the transferee received a
Period of
marital deduction claimed for the
Time
Not
Percent
power of appointment that is not a
transferor's estate (from the transferor's
Exceeding
Exceeding
Allowable
general power of appointment. In
Form 706).
addition to interests in which the
- - - - -
2 years
100
Lines 10 through 18. Enter on these
transferee received the complete
2 years
4 years
80
lines the appropriate taxes paid by the
ownership, the credit may be allowed
4 years
6 years
60
transferor's estate.
6 years
8 years
40
for annuities, life estates, terms for
8 years
10 years
20
If the transferor's estate elected to
years, remainder interests (whether
10 years
- - - - -
none
pay the federal estate tax in
contingent or vested), and any other
installments, enter on line 10 only the
interest that is less than the complete
total of the installments that have
ownership of the property, to the extent
How To Figure the Credit
actually been paid at the time you file
that the transferee became the
this Form 706. See Rev. Rul. 83-15,
beneficial owner of the interest.
A worksheet for Schedule Q is provided
1983-1 C.B. 224, for more details.
to allow you to figure the limits before
Maximum Amount of the Credit
completing Schedule Q. Transfer the
Line 21. Add lines 11 (allowable
The maximum amount of the credit is
appropriate amounts from the
applicable credit) and 13 (foreign death
the smaller of:
worksheet to Schedule Q as indicated
taxes credit) of Part 2—Tax
on the schedule. You do not need to file
1. The amount of the estate tax of
Computation to the amount of any credit
the worksheet with Form 706, but keep
the transferor's estate attributable to the
taken (on line 15) for federal gift taxes
it for your records.
transferred property or
on pre-1977 gifts (section 2012).
Subtract this total from Part 2—Tax
2. The amount by which:
Cases involving transfers from two
Computation, line 8. Enter the result on
or more transferors. Part I of the
a. An estate tax on the transferee's
line 21 of the worksheet.
worksheet and Schedule Q enable you
estate determined without the credit for
to figure the credit for as many as three
tax on prior transfers exceeds
Line 26. If you figured the marital
transferors. The number of transferors is
deduction using the unlimited marital
b. An estate tax on the transferee's
irrelevant to Part II of the worksheet. If
deduction in effect for decedents dying
estate determined by excluding from the
you are figuring the credit for more than
after 1981, for purposes of determining
gross estate the net value of the
three transferors, use more than one
the marital deduction for the reduced
transfer.
worksheet and Schedule Q, Part I, and
gross estate, see Rev. Rul. 90-2,
If credit for a particular foreign death tax
combine the totals for the appropriate
1990-1 C.B. 169. To determine the
may be taken under either the statute or
lines.
“reduced adjusted gross estate,”
a death duty convention, and on this
subtract the amount on line 25 of the
Section 2032A additional tax. If the
return the credit actually is taken under
Schedule Q Worksheet from the amount
transferor's estate elected special-use
the convention, then no credit for that
on line 24 of the worksheet. If
valuation and the additional estate tax of
foreign death tax may be taken into
community property is included in the
section 2032A(c) was imposed at any
consideration in figuring estate tax (a) or
amount on line 24 of the worksheet,
time up to 2 years after the death of the
estate tax (b), above.
figure the reduced adjusted gross estate
decedent for whom you are filing this
using the rules of Regulations section
Percent Allowable
return, check the box on Schedule Q.
20.2056(c)-2 and Rev. Rul. 76-311,
On lines 1 and 9 of the worksheet,
Where transferee predeceased the
1976-2 C.B. 261.
include the property subject to the
transferor. If not more than 2 years
Part Instructions
-41-
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