The federal property tax applies to large estates. The year of the decedent’s death determines the qualifying value of the estate. If you are administering a property that qualifies, you must complete the 706, United States Estate (and Generation-Salto Transfer) tax return form. Follow the correct Form 706 filing procedures, and be sure to avoid underestimating real estate.
Federal property tax is the grandfather of the tax transfer system. Estates worth more than $ 2.5 million for the people who died in 2008, $ 3.5 million in 2009 and $ 1,000,000 in 2011 should complete the model 706, United States Estate (and Generation-Skipping Transfer) Tax Return and paying any tax is due.
The federal property tax is not deductible on property tax returns.
If youâ € re lucky enough to be administering a qualifying property, youâ € re entitled to all the fun of preparing Form 706.
Keep the following points when filing Form 706: