706 checklist Form

706 checklist Form: What You Should Know

Check to see if the estate is a member of a qualified non-deductible IRA. 2. Check if the decedent had any income from non-deductible sources for 2018. 3. If the decedent had any income for 2024 from non-deductible sources, complete “Statement of Non-Deductible Income.” See Internal Revenue Code Section 6012 or the Notice #36 (3-14-86). 4. If the decedent had any income for 2024 from non-deductible sources,  5. Check the total amount of non-deductible gifts to the estate The decedent's or spouse's adjusted federal income tax rate will be used in the computation of the amount received and should be the highest personal tax rate on record for the decedent or spouse (see below discussion). 6. Check the amount of tax withheld by the decedent's employer as well as the amount withheld by the employer if the decedent had a dependent or dependent children; if no dependents, enter zero. 7. Check the total effective federal tax rate on the estate tax return. (See Internal Revenue Code Sections 6012 and 706.) 8. Calculate the gross estate tax for the most recent tax year. Note. Tax rates on estates generally vary from 1/3 to 2/3 of the tax rate on the individual. For example, a 1% tax rate is generally levied on estates greater than 11 million. Thus, if the decedent's estate was only 6 million, the federal tax rate would be a quarter of 1% of the estate tax return. If either the tax rate on the estate or the estate tax return is less than what is calculated, enter a minus sign (-) for those values. Example: If the decedent's estate tax return was less than 11 million, and if its estate tax rate was 4.75%, enter a minus sign (-) to the value of the estate tax return for the 2024 tax year. 9. Calculate the difference between the tax rate on the estate tax return and the tax rate calculated above. 10. Calculate the gross estate tax on that amount. Checklist — Determining whether the estate will be taxed The checklists should be completed each year.

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