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File Form 706 for the estates of decedents who were either U.S. citizens or U.S. residents at the time of death. For estate tax purposes, a resident is someone who had a domicile in the United States at the time of death.
Pursuant to Revenue and Taxation Code section 13510, the penalty for failure to file a California Estate Tax Return is five percent (5%) per month or portion thereof, not to exceed 25%.
Form 706-NA [United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States] must be filed for the estate of every nonresident who is not a U.S. citizen and whose gross estate, valued at the date of death, exceeds the filing threshold [IRC Sec.
Effective October 28, 2021, a user fee of $67 was established for persons requesting the issuance of an estate tax closing letter (ETCL). See ETCL fee, later, for more information. Form 706-NA is used to compute estate and generation-skipping transfer (GST) tax liability for nonresident not a citizen (NRNC) decedents.
Non-resident aliens are entitled to a unified credit of $13,000, reduced by any lifetime gifts. Non-resident decedents whose gross assets are less than $60,000 upon their death may still have to file a Form 706-NA if they have used any part of the $13,000 unified credit during their lifetime.
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Report the sale on Schedule D (Form 1040), Capital Gains and Losses and on Form 8949, Sales and Other Dispositions of Capital Assets: If you sell the property for more than your basis, you have a taxable gain.
IRAs, both traditional and Roth, are reported on Form 706 Schedule I, Annuities. See the note at the top of Schedule I: Generally, no exclusion is allowed for the estates of decedents dying after December 31, 1984 (see instructions).
The executor of a decedents 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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