Instructions For Form 706-Na - 2016 (Page 4 of 6) in pdf

See section 2105(b)(4) for details.

The quantity and denomination,

estate tax due after application of all

Obligor's name,

allowable credits.

Deposits. The following deposits

Maturity date,

are treated as located outside the

Interest rate,

Qualified Conservation Easement

United States if they are not effectively

Each date when interest is payable,

Exclusion

connected with conducting a trade or

Nine-digit CUSIP number, and

business within the United States:

Under section 2031(c), you may elect to

Series number (if more than one

A deposit with a U.S. bank or a U.S.

exclude a portion of the value of land

issue).

banking branch of a foreign corporation,

that is subject to a qualified

Give the exchange where the bond is

A deposit or withdrawable account

conservation easement. You make the

listed. If it is unlisted, give the

with a savings and loan association

election by attaching Schedule U of

corporation's main business office.

chartered and supervised under federal

Form 706 with all the required

or state law,

information. To elect the exclusion, you

The CUSIP (Committee on Uniform

An amount held by a U.S. insurance

must include on Schedule A:

Security Identification Procedure)

company under an agreement to pay

number is a nine-digit number that is

1. The decedent's interest in the

interest, and

assigned to all stocks and bonds traded

land that is subject to the exclusion and

A deposit in a foreign branch of a

on major exchanges and many unlisted

2. Exclude the applicable value of

U.S. bank.

securities. Usually the CUSIP number is

the land (amount from line 20,

printed on the face of the stock

If an asset is included in the total

Schedule U) that is subject to the

certificate. If you do not have a stock

gross estate because the decedent

easement on Schedule A.

certificate, the CUSIP may be found on

owned it at the time of death, apply the

the broker's or custodian's statement or

above location rules as of the date of

You must make the election on a

by contacting the company's transfer

the decedent's death. However, if an

timely filed Form 706-NA, including

agent.

asset is included in the decedent's total

extensions. For more information, see

gross estate under one of the transfer

If you are required to file Schedule E,

the Instructions for Form 706.

provisions (sections 2035, 2036, 2037,

G, or H from Form 706, you do not need

and 2038), it is treated as located in the

to enter the assets reported on those

Canadian Small Estate Relief

United States if it fulfills these rules

schedules on Schedule A of this Form

If you are claiming a small estate

either at the time of the transfer or at the

706-NA. Instead, attach the schedules

exemption (worldwide estate of a

time of death.

to Form 706-NA, in column (b) enter

Canadian resident decedent not more

“Total from Schedule _ _ _ _ _, Form

For example, if an item of tangible

than $1.2 million) from tax on U.S.

706,” and enter the total values from the

personal property was physically

securities or certain other U.S. situs

attached schedules in either column (d)

located in the United States on the date

property under the 1995 Protocol to the

or (e).

of a section 2038 transfer but had been

Canadian income tax treaty, do not list

moved outside the United States at the

If the decedent was a U.S.

the exempt assets on Schedule A.

time of the decedent's death, the item

expatriate, the decedent is treated as

would be considered still located in the

owning a prorated share of the U.S.

Instead, list those assets and their

United States and should be listed on

property held by a foreign corporation in

values in a statement attached to the

Schedule A.

which he or she directly owned at least

return specifying that you are relying on

10% of the voting stock and, with

the treaty. To determine initially whether

Describe the property on Schedule A

related interests, controlled over 50% of

the small estate exemption applies,

in enough detail to enable the IRS to

it (section 2107(b)).

however, you must include the exempt

identify it. To determine the fair market

assets in the value of the entire gross

value of stocks and bonds, use the rules

Property valuation date. Generally,

estate, wherever located, on lines 2 and

in the Instructions for Form 706,

property must be valued as of the date

3 of Schedule B.

Schedule B—Stocks and Bonds.

of death. Columns (c) and (d) do not

apply in this case, and you may use the

Stocks. In descriptions of stock,

United States-United Kingdom

space to expand descriptions from

include:

column (b).

Treaty

The corporation's name;

However, you may elect to use the

The number of shares;

If a decedent who was a United

alternate valuation date. To make this

Whether common or preferred (if

Kingdom national, but was neither

election, check the “Yes” box at the

preferred, what issue);

domiciled in nor a national of the United

beginning of Schedule A. If you do so,

The par value (when needed for

States, has property that is subject to

the election applies to all property, and

identification);

U.S. estate tax under the terms of the

you will need to complete each column

Nine-digit CUSIP number (defined

U.S.-U.K. Treaty, the Treaty places a

in Schedule A. Under this election, any

below); and

limit on the amount of U.S. estate tax

property distributed, sold, exchanged,

The quotation at which reported.

owed on such property. The tax may not

or otherwise disposed of within 6

exceed the U.S. estate tax that could

Give the main exchange for listed

months after the decedent's death is

have been imposed on the decedent’s

stock. For unlisted stock, give the post

valued as of the date of the disposition.

worldwide assets had the decedent died

office address of the main business

Any property not disposed of during that

domiciled in the United States. If the

office of the corporation, the state in

period is valued as of the date 6 months

amount of tax on the property exceeds

which incorporated, and the

after the decedent's death.

that limit, the lower amount may be

incorporation date.

You may not elect alternate valuation

reported as the tax due on the Form

Bonds. In bond descriptions,

unless the election will decrease both

706-NA. You must attach to the estate's

include:

the value of the gross estate and the net

Form 706-NA a statement showing the

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Instructions For Form 706-Na - 2016 Page 4

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