Instructions For Form 706 - 2016 (Page 8 of 54) in pdf

Line 7 Worksheet – Submit a copy with Form 706

Line 7 Worksheet Part A- Used to determine Applicable Credit Allowable for Prior Periods after 1976

(a)

Tax Period

Pre-1977

(b)

Taxable Gifts for Applicable Period

(c)

Taxable Gifts for Prior Periods

(d)

Cumulative Taxable Gifts Including

Applicable Period (add Row (b) and Row

(c))

(e)

Tax at Date of Death Rates for Prior Gifts

(from Row (c))

(f)

Tax at Date of Death Rates for

Cumulative Gifts including Applicable

Period (from Row (d))

(g)

Tax at Date of Death Rates for Gifts in

Applicable Period (subtract Row (e) from

Row (f))

(h)

Total DSUE applied from Prior Periods

and Applicable Period (from Line 2 of

Schedule C of Applicable Period Form

709)

(i)

Basic Exclusion for Applicable Period

(Enter the amount from the Table of

Basic Exclusion Amounts)

(j)

Basic Exclusion amount plus Total

DSUE applied in Prior Periods and

Applicable Period (add Row (h) and Row

(i))

(k)

Maximum Applicable Credit amount

based on Row (j) (Using Table

A—Unified Rate Schedule)

(l)

Applicable Credit amount used in Prior

Periods (add Row (l) and Row (n) from

prior period)

(m)

Available Credit in Applicable Period

(subtract Row (l) from Row (k))

(n)

Credit Allowable (lesser of Row (g) or

Row (m))

(o)

Tax paid or payable at Date of Death

rates for Applicable Period (subtract

Row (n) from Row (g))

(p)

Tax on Cumulative Gifts less tax paid or

payable for Applicable Period (subtract

Row (o) from Row (f))

(q)

Cumulative Taxable Gifts less Gifts in

the Applicable Period on which tax was

paid or payable based on Row (p) (Using

the Taxable Gift Amount Table)

(r)

Gifts in the Applicable Period on which

tax was payable (subtract Row (q) from

Row (d))

Line 7 Worksheet Part B

Total gift taxes payable on gifts after 1976 (sum of amounts in Row (o)).

Gift taxes paid by the decedent on gifts that qualify for “special treatment.” Enter the amount from

Worksheet TG, line 2, col. (e).

Subtract line 2 from line 1.

Gift tax paid by decedent's spouse on split gifts included on Schedule G. Enter amount from Worksheet

TG, line 2, col. (f).

Add lines 3 and 4. Enter here and on Part 2—Tax Computation, line 7.

Cumulative lifetime gifts on which tax was paid or payable. Enter this amount on line 3, Section C, Part 6 of

Form 706 (sum of amounts in Row (r)).

Footnotes:

Row (a): For annual returns, enter the tax period as (YYYY). For quarterly returns enter tax period as (YYYY–Q).

Row (c): Enter amount from Row (d) of the previous column.

Row (e): Enter amount from Row (f) of the previous column.

Row (k): Calculate the applicable credit on the amount in row (j), using Table A — Unified Rate Schedule, and enter here. (For each column in row

(k), subtract 20 percent of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.)

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Part Instructions

Instructions For Form 706 - 2016 Page 8

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