Instructions For Form 706 - 2016 Page 6

ADVERTISEMENT

Table A — Unified Rate Schedule
When you complete the return, staple
all the required pages together in the
proper order.
Column A
Column B
Column C
Column D
Taxable amount over
Taxable amount not
Tax on amount in
Rate of tax on excess
over
Column A
over amount in
Part 1—Decedent and
Column A
Executor
$0
$10,000
$0
18%
10,000
20,000
1,800
20%
Line 2
20,000
40,000
3,800
22%
Enter the social security number (SSN)
40,000
60,000
8,200
24%
assigned specifically to the decedent.
60,000
80,000
13,000
26%
You cannot use the SSN assigned to
80,000
100,000
18,200
28%
the decedent's spouse. If the decedent
100,000
150,000
23,800
30%
did not have an SSN, the executor
150,000
250,000
38,800
32%
should obtain one for the decedent by
250,000
500,000
70,800
34%
filing Form SS-5, with a local Social
500,000
750,000
155,800
37%
Security Administration office.
750,000
1,000,000
248,300
39%
Line 6a. Name of Executor
1,000,000
– – – –
345,800
40%
If there is more than one executor, enter
the name of the executor to be
13 of Part 5—Recapitulation. Otherwise,
such transfers, see the principles
contacted by the IRS and see line 6d.
enter the amount from the “Value at date
discussed in Rev. Rul. 86-117, 1986-2
Line 6b. Executor's Address
of death” column.
C.B. 157, prior to the repeal of section
2011.
Use Form 8822 to report a change of
Line 3b. State Death Tax
the executor's address.
Send the following evidence to the
Deduction
IRS:
Line 6c. Executor's Social
You may take a deduction on line 3b for
1. Certificate of the proper officer of
Security Number
estate, inheritance, legacy, or
the taxing state, or the District of
succession taxes paid on any property
Only one executor should complete this
Columbia, showing the:
included in the gross estate as the result
line. If there is more than one executor,
a. Total amount of tax imposed
of the decedent's death to any state or
see line 6d.
(before adding interest and penalties
the District of Columbia.
Line 6d. Multiple Executors
and before allowing discount),
You may claim an anticipated
Check here if there is more than one
b. Amount of discount allowed,
amount of deduction and figure the
executor. On an attached statement,
c. Amount of penalties and interest
federal estate tax on the return before
provide the names, addresses,
imposed or charged,
the state death taxes have been paid.
telephone numbers, and SSNs of any
However, the deduction cannot be
d. Total amount actually paid in
executor other than the one named on
finally allowed unless you pay the state
cash, and
line 6a.
death taxes and claim the deduction
e. Date of payment.
Line 11. Special Rule
within 4 years after the return is filed, or
2. Any additional proof the IRS
later (see section 2058(b)) if:
If the estate is estimating the value of
specifically requests.
A petition is filed with the Tax Court of
assets under the special rule of
File the evidence requested above
the United States,
Regulations section 20.2010-2(a)(7)(ii),
with the return, if possible. Otherwise,
You have an extension of time to pay,
check here and see the instructions for
send it as soon as possible after the
or
lines 10 and 23 of Part
return is filed.
You file a claim for refund or credit of
5—Recapitulation.
an overpayment which extends the
Line 6
deadline for claiming the deduction.
Part 2—Tax Computation
To figure the tentative tax on the amount
Note. The deduction is not subject to
on line 5, use Table A—Unified Rate
In general, the estate tax is figured by
dollar limits.
Schedule, above, and put the result on
applying the unified rates shown in
If you make a section 6166 election
this line.
Table A to the total of transfers both
to pay the federal estate tax in
during life and at death, and then
Lines 4 and 7
installments and make a similar election
subtracting the gift taxes, as refigured
Three worksheets are provided to help
to pay the state death tax in
based on the date of death rates. See
installments, see section 2058(b) for
you figure the entries for these lines.
Worksheet TG, Line 4 Worksheet, and
exceptions and periods of limitation.
Worksheet TG—Taxable Gifts
Line 7 Worksheet.
Reconciliation allows you to reconcile
If you transfer property other than
Note. You must complete Part 2—Tax
the decedent's lifetime taxable gifts to
cash to the state in payment of state
Computation.
figure totals that will be used for the
inheritance taxes, the amount you may
Line 4 Worksheet and the Line 7
Line 1
claim as a deduction is the lesser of the
Worksheet.
state inheritance tax liability discharged
If you elected alternate valuation on
or the fair market value (FMV) of the
line 1, Part 3—Elections by the
You must have all of the decedent's
property on the date of the transfer. For
Executor, enter the amount you entered
gift tax returns (Forms 709) before
more information on the application of
in the “Alternate value” column of item
completing Worksheet TG—Taxable
-6-
Part Instructions

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial