Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2008

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Department of the Treasury
Instructions for Form 706
Internal Revenue Service
(Rev. August 2008)
For decedents dying after December 31, 2007 and before January 1, 2009
United States Estate (and Generation-Skipping Transfer) Tax Return
Section references are to the Internal
Contents
Page
We added a new worksheet to help
executors figure how much of the
Revenue Code unless otherwise noted.
*Schedule C — Mortgages,
estate tax may be paid in installments
Notes, and Cash . . . . . . . . . . . . . 14
under section 6166. See Determine
*Schedule D — Insurance on
Prior Revisions of Form 706
how much of the estate tax may be
the Decedent’s Life . . . . . . . . . . . 14
paid in installments under section 6166
For
Use
*Schedule E — Jointly Owned
Decedents
Revision
on page 11 for details.
Property . . . . . . . . . . . . . . . . . . . 14
Dying
of
On January 1, 2008, the estate and
*Schedule F — Other
and
Form 706
gift tax treaty between the United
Miscellaneous Property . . . . . . . . 14
After
Before
Dated
States and Sweden was terminated and
Schedule G — Transfers
December
January
July 1999
ceased to have effect. Therefore, we
During Decedent’s Life . . . . . . . . . 15
31, 1998
1, 2001
have deleted the county “Sweden” from
Schedule H — Powers of
December
January
November
the list of countries under Credit Under
31, 2000
1, 2002
2001
Appointment . . . . . . . . . . . . . . . . 16
Treaties, In general on page 22.
December
January
August
Schedule I — Annuities . . . . . . . . . . . 17
Various dollar amounts and
31, 2001
1, 2003
2002
*Schedule J — Funeral
limitations relevant to Form 706 are
December
January
August
Expenses and Expenses
indexed for inflation. For decedents
31, 2002
1, 2004
2003
Incurred in Administering
dying in 2008, the following amounts
December
January
August
Property Subject to Claims . . . . . . 19
have increased:
31, 2003
1, 2005
2004
Schedule K — Debts of the
December
January
August
a. The ceiling on special-use
Decedent and Mortgages
31, 2004
1, 2006
2005
valuation is $960,000.
December
January
October
and Liens . . . . . . . . . . . . . . . . . . . 19
b. The amount used in computing
31, 2005
1, 2007
2006
Schedule L — Net Losses
the 2% portion of estate tax payable
December
January
September
During Administration and
in installments is $1,280,000.
31, 2006
1, 2008
2007
Expenses Incurred in
The IRS will publish amounts for
Administering Property Not
future years in an annual revenue
Contents
Page
Subject to Claims . . . . . . . . . . . . . 20
procedure.
General Instructions . . . . . . . . . . . .1
*Schedule M — Bequests, etc.,
Purpose of Form . . . . . . . . . . . . . . . .1
to Surviving Spouse (Marital
General Instructions
Which Estates Must File . . . . . . . . . .1
Deduction) . . . . . . . . . . . . . . . . . . 20
Executor . . . . . . . . . . . . . . . . . . . . . .2
Schedule O — Charitable,
Purpose of Form
When To File . . . . . . . . . . . . . . . . . .2
Public, and Similar Gifts and
Where To File . . . . . . . . . . . . . . . . . .2
Bequests . . . . . . . . . . . . . . . . . . . 20
The executor of a decedent’s estate
Paying the Tax . . . . . . . . . . . . . . . . .2
Schedule P — Credit for
uses Form 706 to figure the estate tax
Foreign Death Taxes . . . . . . . . . . 21
Signature and Verification . . . . . . . . .2
imposed by Chapter 11 of the Internal
Schedule Q — Credit for Tax
Revenue Code. This tax is levied on
Amending Form 706 . . . . . . . . . . . . .2
on Prior Transfers . . . . . . . . . . . . 22
the entire taxable estate, not just on the
Supplemental Documents . . . . . . . . .3
Schedules R and
share received by a particular
Rounding Off to Whole Dollars . . . . .3
beneficiary. Form 706 is also used to
R-1 — Generation-Skipping
Penalties . . . . . . . . . . . . . . . . . . . . . .3
compute the generation-skipping
Transfer Tax . . . . . . . . . . . . . . . . 23
Obtaining Forms and
transfer (GST) tax imposed by Chapter
Schedule U — Qualified
Publications . . . . . . . . . . . . . . . . . .3
13 on direct skips (transfers to skip
Conservation Easement
Specific Instructions . . . . . . . . . . . .3
persons of interests in property
Exclusion . . . . . . . . . . . . . . . . . . . 27
Part 1 — Decedent and
included in the decedent’s gross
Continuation Schedule . . . . . . . . . . . 29
Executor (Page 1 of Form
estate).
Privacy Act and Paperwork
706) . . . . . . . . . . . . . . . . . . . . . . .4
Reduction Act . . . . . . . . . . . . . . . 30
Which Estates Must File
Part 2 — Tax Computation
Worksheet for Schedule Q . . . . . . . . 31
(Page 1 of Form 706) . . . . . . . . . . .5
For decedents dying in 2008, Form 706
Index . . . . . . . . . . . . . . . . . . . . . . . 32
Part 3 — Elections by the
must be filed by the executor for the
Checklist . . . . . . . . . . . . . . . . . . . . . 33
Executor (Page 2 of Form
estate of every U.S. citizen or resident
* For Schedules A, A-1, C, D, E, F,
706) . . . . . . . . . . . . . . . . . . . . . . .6
whose gross estate, plus adjusted
J, and M, see instructions in the
Part 4 — General Information
taxable gifts and specific exemption, is
Form 706 itself.
more than $2,000,000.
(Pages 2 and 3 of Form 706) . . . . 12
Part 5 — Recapitulation (Page
To determine whether you must file
3 of Form 706) . . . . . . . . . . . . . . . 12
a return for the estate, add:
*Schedule A — Real Estate . . . . . . . 13
What’s New
1. The adjusted taxable gifts (under
*Schedule A-1 — Section
section 2001(b)) made by the decedent
2032A Valuation . . . . . . . . . . . . . 13
Use this revision of Form 706 only for
after December 31, 1976;
Schedule B — Stocks and
the estates of decedents dying in
2. The total specific exemption
Bonds . . . . . . . . . . . . . . . . . . . . . 13
calendar year 2008.
allowed under section 2521 (as in effect
Cat. No. 16779E

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