Form 706 Instructions 2013: Step-by-Step Guide for Estate Tax Filing

The Intricacies of Form 706 Instructions 2013

As a legal professional, diving into the world of estate tax returns can be both challenging and fascinating. Form 706 Instructions 2013 provide a roadmap for navigating the complexities of estate tax reporting, and understanding its nuances is key to ensuring compliance and maximizing tax savings for clients. Let`s delve into this intricate world and unravel the mysteries of Form 706 Instructions 2013.

A Closer Look at Form 706 Instructions 2013

Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is used to report the value of an individual`s estate for federal tax purposes. The instructions for Form 706 in 2013 provide detailed guidance on completing the form, including information on valuation, reporting requirements, and deductions. Understanding these instructions is crucial for accurately reporting the estate`s value and calculating the tax liability.

Valuation Reporting Requirements

Valuing the assets of an estate can be a complex process, and the instructions for Form 706 in 2013 offer detailed guidance on how to determine the fair market value of various types of property. From real estate to stocks and bonds, the instructions provide a framework for accurate valuation and reporting.

Deductions Exclusions

One of the key elements of Form 706 Instructions 2013 is the guidance on allowable deductions and exclusions. Understanding which expenses and liabilities can be subtracted from the estate`s value can significantly impact the final tax liability. From funeral expenses to charitable bequests, the instructions provide a comprehensive overview of potential deductions.

Case Studies and Statistics

Case Study Impact Following Form 706 Instructions 2013
Case Study 1 By meticulously following Form 706 Instructions 2013, an estate was able to maximize deductions and significantly reduce its tax liability, resulting in substantial tax savings for the heirs.
Case Study 2 Failure to adhere to Form 706 Instructions 2013 led to an audit and subsequent penalties for an estate, highlighting the importance of careful compliance with the instructions.

Reflecting The Intricacies of Form 706 Instructions 2013

As a legal professional, delving into the world of Form 706 Instructions 2013 is both a challenge and a privilege. The intricate details and complexities of estate tax reporting demand a deep understanding and an unwavering attention to detail. By mastering the nuances of these instructions, legal professionals can ensure compliance and provide invaluable guidance to their clients.

Frequently Asked Legal Questions about Form 706 Instructions 2013

Question Answer
What Form 706? Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is a tax form used to report the value of an estate and calculate any estate tax due.
Who needs to file Form 706? Form 706 must filed estate U.S. citizen or resident whose gross estate exceeds the basic exclusion amount for the year of their death.
What are the key changes in the 2013 instructions? The 2013 instructions for Form 706 included updates to the federal estate tax exemption amount, the inflation-adjusted exclusion amount, and the portability of a deceased spousal unused exclusion (DSUE) amount.
How do I determine the value of the gross estate? The gross estate includes the total value of all the property and assets owned by the deceased at the time of their death, including real estate, bank accounts, stocks, and personal belongings.
What is the portability election? The portability election allows a surviving spouse to use any unused portion of their deceased spouse`s federal estate tax exemption. This can reduce or eliminate the estate tax liability for the surviving spouse.
Are there any deductions or credits available on Form 706? Yes, the instructions for Form 706 outline various deductions and credits, including administration expenses, charitable deductions, and foreign death taxes.
What are the penalties for failing to file Form 706? Failure to file Form 706 or pay the estate tax when due can result in significant penalties and interest, so it`s important to comply with the filing requirements.
Can I request an extension to file Form 706? Yes, the executor of the estate can request an automatic 6-month extension to file Form 706 by filing Form 4768 before the original due date of the return.
What I questions completing Form 706? If you have questions or need assistance with Form 706, it`s recommended to consult with a qualified tax professional or estate planning attorney to ensure compliance with the filing requirements.
Where can I find the 2013 instructions for Form 706? The official instructions for Form 706, including the 2013 version, are available on the IRS website or can be obtained from a local IRS office or tax preparer.

Form 706 Instructions 2013 Legal Contract

This legal contract (the “Contract”) entered day Executor Estate Internal Revenue Service (IRS). The purpose of this Contract is to provide detailed instructions for filling out Form 706 for the tax year 2013 in compliance with the relevant laws and regulations.

Article I – Definitions

For the purposes of this Contract, the following definitions shall apply:

  • Executor: The person legally responsible handling estate deceased individual.
  • IRS: The Internal Revenue Service, government agency responsible tax collection enforcement.
  • Form 706: The United States Estate (and Generation-Skipping Transfer) Tax Return tax year 2013.
Article II – Obligations

The Executor shall be responsible for accurately completing and filing Form 706 in accordance with the instructions provided by the IRS for the tax year 2013. The Executor shall ensure that all relevant information and documentation are included with the submission of Form 706.

Article III – Compliance Laws

The Executor shall comply with all applicable laws, regulations, and requirements set forth by the IRS in relation to Form 706 for the tax year 2013. Any failure to comply with such laws and regulations may result in penalties and legal consequences.

Article IV – Governing Law

This Contract shall governed construed accordance laws United States State Executor located.

Article V – Termination

This Contract may be terminated by mutual agreement of the parties or by operation of law upon completion of the filing of Form 706 for the tax year 2013.