Instructions For Form 706-Qdt (Rev. August 2014) (Page 6 of 7) in pdf

here that has not been included in the

Taxable Distributions, Column b.

for the decedent's estate or as finally

amount listed in column c. Also, if the

Description, earlier.

determined by the IRS.

surviving spouse is the beneficiary of

Part 2—Tax Computation, line 3 of

Column c. Alternate valuation date.

more than one QDOT, you may not

Form 706 (for estates of decedents

If this return involves only one trust,

claim the hardship exemption unless the

dying before January 1, 2005).

enter the alternate valuation date only if

decedent's executor selected a

Part 2—Tax Computation, line 3c of

you answered “Yes” to question 1 of

designated filer. See Designated Filer,

Form 706 (for estates of decedents

Part II—Elections by the Trustee/

earlier.

dying on or after January 1, 2005).

Designated Filer.

Part II—Tax Computation, line 1 of

Part IV—Taxable Property in

If the designated filer is filing this

Form 706-NA.

Trust at Death of Surviving

return for multiple trusts, the individual

Lines 10 and 11. Using the same

trustees will complete Part IV, but only

Spouse

revision of Form 706 or Form 706-NA on

the designated filer can elect alternate

You must report in Part IV all property

which the executor filed the decedent's

valuation. To allow the designated filer

remaining in the QDOT on the date of

estate tax return, recompute the

to make this decision, the trustee must

death of the surviving spouse (or the

decedent's net estate tax by substituting

provide on an attachment to Schedule B

date the trust failed to qualify as a

the amounts on line 9 and line 8 of this

both the regular and the alternate value

QDOT, if applicable). This includes both

Form 706-QDT for the decedent's

(and the alternate valuation date) for all

corpus and undistributed income.

taxable estate from one of the following.

assets, unless the designated filer has

Part 2—Tax Computation, line 3 of

notified the trustee that this is not

Interest accrued to the date of the

Form 706 (for estates of decedents

required.

surviving spouse's death on bonds,

dying before January 1, 2005).

notes, and other interest bearing

Column d. Value. See the instructions

Part 2—Tax Computation, line 3c of

obligations is property of the QDOT on

under Column c. Value for Part III,

Form 706 (for estates of decedents

the date of death. Rent accrued to the

earlier.

dying on or after January 1, 2005).

date of the surviving spouse's death on

Parts V and VI—Marital and

Part II—Tax Computation, line 1 of

leased real and personal property is

Form 706-NA.

Charitable Deductions

property of the QDOT on the date of

Prior year versions of Forms 706 and

death.

Marital and charitable deductions are

706-NA can be obtained by calling

allowable for any property that both

Outstanding dividends that were

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

remained in the QDOT on the date of

declared to stockholders of record on or

by accessing the IRS website at

the surviving spouse's death and was

before the date of the surviving

includible in the gross estate of the

spouse's death are considered property

surviving spouse (or would have been

Note that as a result of the

of the QDOT on the date of death.

includible if the surviving spouse had

recomputation, some items other than

Ordinary dividends declared to

been a U.S. citizen or resident).

the taxable estate might be different

stockholders of record after the date of

from what was on the decedent's actual

Do not make an entry in Parts V and

the surviving spouse's death are not

estate tax return. If the decedent's

VI unless there is an entry in Part IV of

property of the QDOT on the date of

estate did not fully use its unified credit,

Schedule B. Also, the sum of the total of

death. However, if you have elected

additional unified credit may be

the amounts entered in Parts V and VI

alternate valuation on line 1 of Part II,

allowable in the recomputation.

cannot exceed the total of the amount

page 1, and dividends are declared to

If the decedent's estate claimed a

entered in Part IV of Schedule B.

stockholders of record after the date of

credit for tax on prior transfers and the

the surviving spouse's death so that the

For details on the marital and

credit was limited by section 2013(c),

shares of stock at the later valuation

charitable deductions, see the

the recomputed credit may be different

date do not reasonably represent the

instructions for Schedule M and

than on the return as filed.

same property at the date of the

Schedule O of Form 706, as applicable.

Also, if the decedent's estate claimed

surviving spouse's death, include those

a credit for state death taxes (for

dividends (except dividends paid from

Schedule A

decedents dying before January 1,

earnings of the corporation after the

When a designated filer is filing Form

2005) or a credit for foreign death taxes

date of the surviving spouse's death) in

706-QDT for more than one trust, use

and the amount of the credit that could

the alternate valuation.

Schedule A to summarize the

be claimed was limited by section

Schedule B amounts provided by the

If there is not enough space to list all

2011(b) (prior to its repeal on January 1,

trustees. Under “EIN of QDOT” (that is,

of the property, attach additional sheets

2005) or section 2014(b), respectively,

column a of Parts II, III, and IV), enter

of the same size, using the same format

the recomputed credit may be different.

the EIN of the appropriate trust. If the

as Part IV.

If the final determination of the tax

trustee is filing the return, simply

due on the estate of the decedent has

Column a. Item no. Assign a separate

transfer the totals from Schedule B to

not been made at the time this return is

item number to each separate type of

the corresponding “Total” lines on

filed, you must compute the tax on

property. For example, you can include

Schedule A.

these lines using the highest rate of tax

under a single item number all stock of

(see Table of Maximum Tax Rates

the same issuer and type, but must list

Part III—Tax Computation

below) in effect at the time of the

separate types (for example, preferred

(Page 1 of Form 706-QDT)

decedent's death.

and common) under separate item

numbers.

Also, if there is more than one QDOT

Line 7. Enter the amount of the taxable

with respect to any decedent, you must

estate from one of the following as filed

Column b. Description. See the

compute the tax on lines 10 and 11

instructions under Part III—Current

-6-

Instructions For Form 706-Qdt (Rev. August 2014) Page 6

Related Articles

Related forms

Related Categories