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The IRS also provides a 20 percent penalty if you underpay the estate tax by more than $5,000 if the underpayment is due to understated valuations. A valuation understatement occurs when the value of property reported on Form 706 is 50% or less of the actual value of the property.
When does it need to be filed? The form must be filed within nine months of the date of the decedent's death.
This includes (a) cash, investments, retirement assets, tax-exempt assets, business assets, real and personal property; (b) probate, as well as jointly-held assets; (c) non-taxable assets exempt from taxation under the marital or charitable deductions; (d) life insurance and annuities, as well as special interests and ...
estate tax deduction. Property and income taxes. Allowable death taxes.... General. Funeral expenses. Executors' commissions. Attorney fees. Interest expense. Miscellaneous expenses.
The executor of a decedent's estate uses Form 706 to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code. Form 706 is also used to compute the generation-skipping transfer (GST) tax imposed by Chapter 13 on direct skips.
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Generally, this election is made on a Form 706 that is originally due 9 months after the date of death of the decedent, though that can be extended to 15 months if a timely extension is requested.
The executor of a decedent's estate uses Form 706 to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code. Form 706 is also used to compute the generation-skipping transfer (GST) tax imposed by Chapter 13 on direct skips.
This includes (a) cash, investments, retirement assets, tax-exempt assets, business assets, real and personal property; (b) probate, as well as jointly-held assets; (c) non-taxable assets exempt from taxation under the marital or charitable deductions; (d) life insurance and annuities, as well as special interests and ...
If the decedent is a U.S. citizen or resident and decedent's death occurred in 2016, an estate tax return (Form 706) must be filed if the gross estate of the decedent, increased by the decedent's adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the ...
IRS Form 1041, U.S. Income Tax Return for Estates and Trusts, is required if the estate generates more than $600 in annual gross income. The decedent and their estate are separate taxable entities.

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