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Section 2013 Credit for Tax on Prior Transfers - Example 1
Transferee's 2013 Federal Form 706, Page 1, Part 2 - Tax Computation
Date of Death Apr-30-2017
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| 1 | Total gross estate less exclusion | 1 | 31,250,000.00 | ||
| 2 | Tentative total allowable deductions | 2 | 6,000,000.00 | ||
| 3a | Tentative taxable estate (before state death tax deduction) (subtract line 2 from line 1) | 3a | 25,250,000.00 | ||
| b | State death tax deduction | b | 3,506,800.00 | ||
| c | Taxable estate (subtract line 3b from line 3a) | c | 21,743,200.00 | ||
| 4 | Adjusted taxable gifts | 4 | 1,000,000.00 | ||
| 5 | Add lines 3c and 4 | 5 | 22,743,200.00 | ||
| 6 | Tentative tax on the amount on line 5 | 6 | 9,043,080.00 | ||
| 7 | Total gift tax paid or payable | 7 | 0.00 | ||
| 8 | Gross estate tax (subtract line 7 from line 6) | 8 | 9,043,080.00 | ||
| 9a | Basic exclusion amount | 9a | 5,490,000.00 | ||
| 9b | DSUE amount from predeceased spouse | 9b | 0.00 | ||
| 9c | Applicable exclusion amount (add lines 9a and 9b) | 9c | 5,490,000.00 | ||
| 9d | Applicable credit amount (tentative tax on amount in 9c) | 9d | 2,141,800.00 | ||
| 10 | Adjustment to unified credit (applicable credit amount) | 10 | 0.00 | ||
| 11 | Allowable applicable credit amount (subtract line 10 from line 9) | 11 | 2,141,800.00 | ||
| 12 | Subtract line 11 from line 8 (but do not enter less than zero) | 12 | 6,901,280.00 | ||
| 13 | Credit for foreign death taxes (from Schedule P) | 13 | 0.00 | ||
| 14 | Credit for tax on prior transfers (from Schedule Q) | 14 | 683,443.36 | ||
| 15 | Total credits (add lines 13 and 14) | 15 | 683,443.36 | ||
| 16 | Net estate tax (subtract line 15 from line 12) | 16 | 6,217,836.64 | ||
| 17 | Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10) | 17 | 0.00 | ||
| 18 | Total transfer taxes (add lines 16 and 17) | 18 | 6,217,836.64 | ||
| 19 | Prior payments. Explain in an attached schedule. | 19 | 0.00 | ||
| 20 | Balance due (or overpayment) | 20 | 6,217,836.64 | ||
SCHEDULE Q - Credit for Tax on Prior Transfers
| Part 1. Transferor Information | ||||
| Name of transferor | Social security number |
IRS office where estate
tax return was filed
|
Date of death | |
| A | Transferor A | xxx-99-9999V | Cincinnati Service Center | Sep-16-2015 |
| B | Transferor B | xyz-99-9998V | Cincinnati Service Center | Dec-03-2012 |
| C | Transferor C | zzz-99-9997V | Cincinnati Service Center | Mar-29-2009 |
| Check here ► [ ] if section 2013(f) (special valuation of farm, etc., real property) adjustments to the computation of the credit were made (see instructions). | ||||
| Part 2. Computation of Credit (see instructions) | |||||
| Item | Transferor |
Total
A, B, & C
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| A | B | C | |||
| 1 | Transferee's tax as apportioned (from worksheet, (line 7 ÷ line 8) x line 35 for each column) | 568,949.91 | 242,157.14 | 412,564.02 | |
| 2 | Transferor's tax (from each column of worksheet, line 20) | 824,459.74 | 88,360.19 | 307,386.72 | |
| 3 | Maximum amount before percentage requirement (for each column, enter amount from line 1 or line 2, whichever is smaller) | 568,949.91 | 88,360.19 | 307,386.72 | |
| 4 | Percentage allowed (each column) (see instructions) | 100% | 60% | 20% | |
| 5 | Credit allowable (line 3 x line 4 for each column) | 568,949.91 | 53,016.11 | 61,477.34 | |
| 6 | TOTAL credit allowable (add columns A, B, and C of line 5). Enter here and on line 14 of Part 2 - Tax Computation. | 683,443.36 | |||
| Worksheet for Schedule Q - Credit for Tax on Prior Transfers | ||||||
| Part I | Transferor's tax on prior transfers |
Total for all transfers
(line 8 only)
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| Item | Transferor (From Schedule Q) | |||||
| A | B | C | ||||
| 1. | Gross value of prior transfer to this transferee | 2,000,000.00 | 675,000.00 | 1,150,000.00 | ||
| 2. | Death taxes payable from prior transfer | 279,867.75 | 0.00 | 0.00 | ||
| 3. | Encumbrances allocable to prior transfer | 134,215.00 | 0.00 | 0.00 | ||
| 4. | Obligations allocable to prior transfer | 0.00 | 0.00 | 0.00 | ||
| 5. | Marital deduction applicable to line 1 above, as shown on transferor's Form 706 | 0.00 | 0.00 | 0.00 | ||
| 6. | TOTAL. Add lines 2, 3, 4, and 5 | 414,082.75 | 0.00 | 0.00 | ||
| 7. | Net value of transfers. Subtract line 6 from line 1 | 1,585,917.25 | 675,000.00 | 1,150,000.00 | ||
| 8. | Net value of transfers. Add columns A, B, and C of line 7 | 3,410,917.25 | ||||
| 9. | Transferor's taxable estate | 20,465,520.00 | 7,650,000.00 | 6,120,800.00 | ||
| 10. | Federal estate tax paid | 6,014,208.00 | 885,500.00 | 1,179,360.00 | ||
| 11. | State death taxes paid | 2,882,480.00 | 0.00 | 529,200.00 | ||
| 12. | Foreign death taxes paid | 0.00 | 0.00 | 0.00 | ||
| 13. | Other death taxes paid | 0.00 | 0.00 | 0.00 | ||
| 14. | Total taxes paid. Add lines 10, 11, 12, and 13 | 8,896,688.00 | 885,500.00 | 1,708,560.00 | ||
| 15. | Value of transferor's estate. Subtract line 14 from line 9 | 11,568,832.00 | 6,764,500.00 | 4,412,240.00 | ||
| 16. | Net Federal estate tax paid on transferor's estate | 6,014,208.00 | 885,500.00 | 1,179,360.00 | ||
| 17. | Credit for gift tax paid on transferor's estate with respect to pre-1977 gifts (section 2012) | 0.00 | 0.00 | 0.00 | ||
| 18. | Credit allowed transferor's estate for tax on prior transfers from prior transferor(s) who died within 10 years before death of decedent | 0.00 | 0.00 | 0.00 | ||
| 19. | Tax on transferor's estate. Add lines 16, 17, and 18 | 6,014,208.00 | 885,500.00 | 1,179,360.00 | ||
| 20. | Transferor's tax on prior transfers ((line 7 ÷ line 15) x line 19 of respective estates) | 824,459.74 | 88,360.19 | 307,386.72 | ||
| Part II | Transferee's tax on prior transfers | |||||||
|---|---|---|---|---|---|---|---|---|
| Item | Amount | |||||||
| 21. | Transferee's actual tax before allowance of credit for prior transfers (see instructions) | 6,901,280.00 | ||||||
| 22. | Total gross estate of transferee from line 1 of the Tax Computation, page 1, Form 706 | 31,250,000.00 | ||||||
| 23. | Net value of all transfers from line 8 of this worksheet | 3,410,917.25 | ||||||
| 24. | Transferee's reduced gross estate. Subtract line 23 from line 22 | 27,839,082.75 | ||||||
| 25. | Total debts and deductions (not including marital and charitable deductions) (line 3b of Part 2 - Tax Computation, page 1 and items 18, 19, and 20 of the Recapitulation, page 3, Form 706 (see instructions) | 7,006,800.00 | ||||||
| 26. | Marital deduction from item 21, Recapitulation, page 3, Form 706 (see instructions) | 0.00 | ||||||
| 27. | Charitable bequests from item 22, Recapitulation, page 3, Form 706 | 2,500,000.00 | ||||||
| 28. | Charitable deduction proportion ([line 23 ÷ (line 22 - line 25)] x line 27) | 351,739.59 | ||||||
| 29. | Reduced charitable deduction. Subract line 28 from line 27 | 2,148,260.41 | ||||||
| 30. | Transferee's deduction as adjusted. Add lines 25, 26, and 29 | 9,155,060.41 | ||||||
| 31. | (a) | Transferee's reduced taxable estate. Subtract line 30 from line 24 | 18,684,022.34 | |||||
| (b) | Adjusted taxable gifts | 1,000,000.00 | ||||||
| (c) | Total reduced taxable estate. Add lines 31(a) and 31(b). | 19,684,022.34 | ||||||
| 32. | Tentative tax on reduced taxable estate | 7,819,408.93 | ||||||
| 33. | (a) | Post-1976 gift taxes paid | 0.00 | |||||
| (b) | Unified credit (applicable credit amount) | 2,141,800.00 | ||||||
| (c) | Section 2012 gift tax credit | 0.00 | ||||||
| (d) | Section 2014 foreign death tax credit | 0.00 | ||||||
| (e) | Total credits. Add lines 33(a) through 33(d). | 2,141,800.00 | ||||||
| 34. | Net tax on reduced taxable estate. Subtract line 33(e) from line 32. | 5,677,608.93 | ||||||
| 35. | Transferee's tax on prior transfers. Subtract line 34 from line 21. | 1,233,671.07 | ||||||