Instructions For Form 706-Qdt (Rev. August 2014) (Page 5 of 7) in pdf

To treat any distributions that were

been reported on previously filed Forms

If the stock or bond is unlisted, show

706-QDT.

the company's principal business office.

subject to QDOT tax as taxable gifts for

purposes of determining the estate or

The CUSIP (Committee on Uniform

Part III—Current Taxable

gift tax under sections 2001 and 2501,

Security Identification Procedure)

Distributions

respectively, for the year the surviving

number is a nine-digit number that is

spouse became a citizen and all

Enter here the total amount of corpus

assigned to all stocks and bonds traded

subsequent years and

distributed during the calendar year or

on major exchanges and many unlisted

other period covered by this return and

To treat any of the decedent's unified

securities. Usually the CUSIP number is

before the date of death of the surviving

credit (applicable credit amount) that

printed on the face of the stock

spouse. Include as a distribution on this

was used to reduce the QDOT tax on

certificate. If the CUSIP number is not

line any QDOT estate tax paid during

taxable distributions as use of the

printed on the certificate, it may be

the calendar year out of the QDOT.

surviving spouse's own unified credit for

obtained through the company's

Include all distributions even if the

purposes of determining the spouse's

transfer agent.

hardship exemption is being claimed.

available unified credit under section

Other personal property. Any

2505 for the year he or she became a

Also, include as distributions in this

personal property distributed must be

citizen and for all subsequent years.

part any reportable payments to the

described in enough detail that its value

To make these elections, check

surviving spouse from nonassignable

can be ascertained by the IRS.

“Yes” on line 4 and attach notification of

annuities and other arrangements when

Column c. Value. The value of a

the election to this return.

the executor has filed with the estate tax

distribution is its FMV on the date of

return for the decedent's estate an

Schedule B

distribution. FMV is the price at which

agreement to pay section 2056A estate

the property would change hands

tax on such distributions. For details,

Part I—General Information

between a willing buyer and a willing

see Regulations section 20.2056A-4(c).

seller, when neither is forced to buy or

If the trustee is filing the entire return,

Column a. Date of distribution. The

to sell, and both have reasonable

the trustee needs to complete only lines

date of distribution is the date on which

knowledge of all the relevant facts. FMV

1a and 1b of this part of Schedule B (but

the title to the distributed property

may not be determined by a forced sale

all of Parts II through VI). When

passed from the trustee to the surviving

price, nor by the sale price of the item in

completing Part I on page 1, enter the

spouse.

a market other than that in which the

remaining trustee's information on lines

item is most commonly sold to the

2a, 2b, and 2c.

Column b. Description. Include in the

public. The location of the item must be

description the name of the individual(s)

Line 1b. All trusts filing Form 706-QDT

taken into account whenever relevant.

to whom the distribution was made.

must have an EIN. A trust that does not

have an EIN should apply for one on

Stocks and bonds. The FMV of a

Real estate. Describe the real

Form SS-4, Application for Employer

stock or bond (whether listed or

estate in enough detail so that the IRS

Identification Number. You can get

unlisted) is the mean between the

can easily locate it for inspection and

Form SS-4, and other IRS tax forms and

highest and lowest selling prices quoted

valuation. For each parcel of real estate,

publications, by calling

on the valuation date. If only the closing

report the location and, if the parcel is

1-800-TAX-FORM (1-800-829-3676)

selling prices are available, then the

improved, describe the improvements.

or by accessing the IRS website at

FMV is the mean between the quoted

For city or town property, report the

closing selling price on the valuation

street number, ward, subdivision, block

date and on the trading day before the

Send the completed Form SS-4 to

and lot, etc. For rural property, report

valuation date. If there were no sales on

the Internal Revenue Service Center

the township, range, landmarks, etc.

the valuation date, figure the FMV as

listed under Where To File, earlier. If the

Stocks and bonds. For stocks,

follows.

EIN has not been received by the filing

give:

time for Form 706-QDT, write “Applied

1. Find the mean between the

Number of shares;

for” on line 1b.

highest and lowest selling prices on the

Whether common or preferred;

nearest trading day before and the

Line 2a. You must enter on this line

Issue;

nearest trading day after the valuation

either the name of an individual trustee

Par value, where needed for

date. Both trading days must be

who is a U.S. citizen or a trustee that is

valuation;

reasonably close to the valuation date.

a domestic corporation. If there is more

Price per share;

2. Prorate the difference between

than one trustee, enter the one to be

Exact name of corporation;

the mean prices to the valuation date.

contacted by the IRS. List the names of

Principal exchange upon which sold,

all additional trustees on a sheet of

3. Add or subtract (whichever

if listed on an exchange; and

paper attached to this return. Include

applies).

CUSIP number (defined below).

the SSN or EIN of all U.S. citizens or

See the instructions for Schedule B

For bonds, give:

domestic corporations.

of Form 706 for additional information

Quantity and denomination;

Line 2b. Enter the SSN or EIN, as

on valuing stocks and bonds.

Name of obligor;

applicable, of the trustee listed on

Date of maturity;

Column d. Amount of hardship ex-

line 2a.

Interest rate;

emption claimed. Distributions to the

Part II—Taxable Distributions

Interest due date;

surviving spouse on account of hardship

From Prior Years

Principal exchange, if listed on an

are exempt from the QDOT tax. Enter in

exchange; and

column d the amount of any distribution

Enter here the total of all taxable

CUSIP number.

for which the hardship exemption is

distributions that were or should have

being claimed. Do not enter any amount

-5-

Instructions For Form 706-Qdt (Rev. August 2014) Page 5

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