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Form 706 (US Estate and GST Tax Return)
Introduction:
The Form 706 modules in the BRS Tax Preparer
program implement a powerful solution to the complex and verbose United
States Estate (and Generation-Skipping Transfer) Tax Return known simply as
Form 706.
The BRS Tax Preparer implements a different form module for each revision
of the Form 706 that it supports.
All of the Form 706 modules share a common feature set that is listed
below.
General Features:
The BRS Tax Preparer was build to simplify the complex nature of
the Form 706 and similar verbose returns. So all of the features of the
BRS Tax Preparer are also features that
benefit a Form 706 preparation program. See the features of the BRS Tax
Preparer for a full list of general program features.
Just to name a few:
- Automatically generates continuation schedules at print time.
- Edit all schedule item-rows on the main schedule (not continuations)
- Easily move item-rows between schedules.
- Drill down to find to the associated detail field for the active
summary field.
- Use worksheets to perform complex calculations.
- More features of the BRS Tax Preparer
here.
Form 706 Features Summary:
Special Worksheets and Calculations:
- Worksheet TG - Line 4 Worksheet - Line 7 Worksheet (details)
- Schedule P "Copy" Worksheet(s)
- Schedule Q Worksheet (details)
- Schedule R-1 Summary Worksheet (details)
- Schedule R- Special Use Allocation Schedule (details)
- Schedule R- Trust Inclusion Ratio worksheet (details)
- Schedule R, Part 2 "Copy" worksheet
- Schedule R, Part 3 "Copy" worksheet
- Schedule U - Line 14 Worksheet (details)
Noteworthy Calculations:
- Automatically calculate the gross estate based on Alternate Valuation or Date of
Death Valuation
- Schedule Q, Part 2, line 4 "Percentage allowed" (details)
- Form 706, Part 4, Line 5 can be calculated by attaching a custom
Details Worksheet to this field.
- Schedule R-1, Part 2, Line 6 special case calculation (details)
- Schedule R, Part 1, Line 6 (Total exemption allocated on line 4 of
Schedule(s) R-1)
- Schedule R, Part 3, Line 3 (Total GST Taxes borne by the property
interests listed on Schedule R, Part 3, but imposed on direct skips
other than those shown on Schedule R, Part 3)
Standard Form 706 Schedules:
- Form 706 (Pages 1, 2, 3)
- Schedule A-1
- Schedule A
- Schedule B
- Schedule C
- Schedule D
- Schedule E
- Schedule F
- Schedule G
- Schedule H
- Schedule I
- Schedule J
- Schedule K
- Schedule L
- Schedule M
- Schedule O
- Schedule P
- Schedule Q
- Schedule R
- Schedule R-1
- Schedule U
- Form 706 Checklist
Related form modules to Form 706:
- Form 706-CE
- Form 712
- Form 709
- Form 56
- Form 56-F
- Form 2350
- Form 2688
- Form 2848
- Form 4768
- Form 8275
- Form 8275-R
- Form 8821
- Form 8822
- Form 8892
Note that while these forms are available separately, they are not included
in the Form 706 module. See the
form modules page for a complete listing.
Details:
Our Worksheet TG is a powerful tool to
calculated the lines 4 and 7 of Form 706, Page 2. It combines Worksheet TG
with the Line 4 Worksheet and Line 7 Worksheet from the Form 706 instructions.
This worksheet is not just for illustration purposes leaving most of the harder
calculations up to the user like other products. It carries the entries
made in Worksheet TG's grid down to the associated rows in the Line 7 Grid.
It even calculates the tricky column D and E values for each row in the Line 7
Worksheet.
Our Schedule R - Special Use
Allocation Schedule illustrates the allocation of the GST exemption to each
skip person who receives an interest in section 2032A special use property.
This is required since, for each such skip person, you may allocate more GST
exemption than the direct skip amount to reduce the additional GST Tax that
would be due when the interest is later disposed of, or qualified use ceases.
The result it calculates Schedule R, Part 1, line 10 amount and the remaining
GST exemption.
Our Schedule R - Trust
Inclusion Ratio worksheet calculates the Schedule R, Part 1, Line 9, column
E amount for any row in the line 9 grid. This is not just a calculator
dialog it is a printable worksheet.
Our Schedule R-1 Summary Worksheet calculates
both the Schedule R, Part 1, Line 6 and Schedule R, Part 3, Line 3 amounts from
all of the available Schedule(s) R-1.
- It calculates the total GST tax imposed on Schedule(s) R-1 that are to be borne
by direct-skips on Schedule R, and carries this amount to Schedule R, Part 1,
Line 6.
- It calculates the total GST taxes imposed on, but not borne by, the
property interests listed on all Schedule(s) R-1 and carries this amount to
Schedule R, Part 3, Line 3.
- These are complex calculations that are not implemented by many other
more expensive programs.
Our Schedule Q Worksheet is an exact
implementation of this worksheet from the IRS instructions. It can be
attached to help calculate the Schedule Q, Part 2, line 1 and line 2 amounts in
complex situations.
Our Schedule U - Line 14 Worksheet allows you to calculate
the Schedule U, line 14 value in the special case where the property was
different than the estate tax value, as described in the IRS instructions for
Schedule U.
Schedule Q, Part 2, line 4 "Percentage allowed"
is calculated based on the rules described in the IRS instructions using the
date of death of the decedent (the transferee) and the date of death of the
transferor listed in Part 1 of Schedule Q.
Our Schedule R-1 has a special calculation
to handle the situation where the GST taxes are imposed on, but not borne by,
the property interest listed on this Schedule R-1. In this case the
Schedule R-1, Part 2, line 6 is calculated differently by checking a box.
The total of these amounts are carried to the Schedule R-1 Summary Worksheet's
Line 2 amount and then to Schedule R, Part 3, Line 3 amount. This
calculation is not possible in many up scale estate tax preparation programs.
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