ATS TAX & FINANCIAL SOLUTIONS, INC.

aka "The Tax Angels"

1075 First Street, Suite 6 | Benicia, CA 94510 | Phone: 707.745.1040 | Fax: 707.745.0281

Forms 706 & 709 - U. S. Estate & Gift Tax Forms

Form 706:

 

Purpose of Form

 

The Executor of a decedent’s Estate uses Form 706 to figure the Estate Tax imposed by Chapter 11 of the Internal Revenue Code. This Tax is levied on the entire taxable Estate and not just on the share received by a particular beneficiary. Form 706 is also used to figure the generation-skipping transfer tax imposed by Chapter 13 on direct skips (transfers to skip persons of interests in property included in the decedent’s gross Estate).

 

Which Estates Must File

 

For decedents dying in 2012 Form 706 must be filed by the executor for the estate of every U.S. citizen or resident:

 

  • Whose gross Estate, plus adjusted taxable gifts and specific exemption, is more $5,120,000.
  • Whose executor wants to make the election to permit the decedent’s surviving spouse to use the decedent’s unused exclusion amount, regardless of the size of the decendent's gross estate.

 

Form 709:

 

Purpose of Form

 

Use Form 709 to report the following:

 

  • If you gave gifts to someone in 2012 totaling more than $13,000 (other than to your spouse), you probably must file Form 709.
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