Tax Tips for 706
Form 706 - Estate (and Generation-Skipping Transfer) Tax
Use UltimateTax 2011 for persons who died after December 31, 2011, and before January 1, 2013. For any person that dies during the year 2012, UltimateTax 2011 should be used. The 706 package is normally released in September each year. This is when the IRS updates the forms. We have a special release for this package after the IRS approves all of the laser forms.
Form 706 is due nine months after the date of death.
The IRS does not support e-filing for Form 706.
Form 706, Page 1
Fill out Form 706, page 1, for information about the estate's decedent and executor.
To add a state to the return, enter the state abbreviation under line 5 or press F3 to get the red out of the entry.
If a change of address is needed, you must complete Form 8822, located in the Miscellaneous package.
The total gross estate less the exclusion is calculated on line 1, which comes from Form 706, page 3, Part 5, line 12.
The total allowable deductions on line 2 are calculated from Form 706, page 3, line 22.
Form 706, Page 2
Answer the questions regarding the executor.
If you answer "No" to question 1, the alternate valuation columns will calculate on other Schedules.
Enter the representative, decedent, and surviving spouse information in this section.
Enter the beneficiaries' information on line 5. If there are more than thirteen beneficiaries, link from the "name of the individual, trust, or estate receiving $5,000 or more" column to a statement.
Answer the questions at the top of the page.
Part 5 - Recapitulation
Lines 1 through 9 are calculated from their corresponding Schedules to show the gross worth of the estate.
Lines 13 through 21 are calculated from Schedules to show the deductions to the taxable estate.
Line 12 and line 22 flow to Form 706, page 1.
Schedule A through Schedule I show the value of the decedent's estate.
Enter deductions and credits on Schedule J through Schedule Q.
If, at any time, you need more room to list items, link the entries that read "Total from Continuation Schedules" to a Continuation Schedule. These Continuation Schedules will print with the return.
Form 4768 - Application for Extension of Time to File or Pay
Part I is calculated for you from Form 706, page 1.
Mark the applicable box in Part II to apply for an extension of time to file Form 706.
You are given an automatic six-month extension.
Part IV is where you apply for an extension of time to pay the tax owed.
This information applies to all years of the UltimateTax software.