Section 2013 Computation Without Section 6166

 

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 
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
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)
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