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Worksheet TG and Line 4 Worksheet Worksheet TG—Taxable Gifts Reconciliation (To be used for lines 4 and 7 of the Tax Computation) Calendar year or calendar quarter Total taxable gifts for period (see Note) Note. For the definition of a taxable gift, see section 2503. Follow Form 709. That is, include only the decedent’s one-half of split gifts, whether the gifts were made by the decedent or the decedent’s spouse. In addition to gifts reported on Form 709, you must include any taxable gifts in excess of the annual exclusion that were not reported on Form 709. b. a. Taxable amount included in col. b for gifts that qualify for “special treatment of split gifts” described below Taxable amount included in col. b for gifts included in the gross estate Gift tax paid by decedent on gifts in col. d Gift tax paid by decedent’s spouse on gifts in col. c Gifts made after June 6, 1932, and before 1977 Total taxable gifts made before 1977 1. f. e. d. c. Gifts made after 1976 Totals for gifts made after 1976 2. Line 4 Worksheet—Adjusted Taxable Gifts Made After 1976 1. Taxable gifts made after 1976. Enter the amount from Worksheet TG, line 2, column b Taxable gifts made after 1976 reportable on Schedule G. Enter the amount from Worksheet TG, line 2, column c 2. Taxable gifts made after 1976 that qualify for “special treatment.” Enter the amount from Worksheet TG, line 2, column d 3. Add lines 2 and 3 4. Adjusted taxable gifts. Subtract line 4 from line 1. Enter here and on Part 2—Tax Computation, line 4 5. 1 2 3 4 5 Note. You must complete Part 2—Tax finally allowed unless you pay the state You should send the following Computation. death taxes and claim the deduction evidence to the IRS: within 4 years after the return is filed, or 1. Certificate of the proper officer of Line 1 later (see section 2058(b)) if: the taxing state, or the District of • A petition is filed with the Tax Court If you elected alternate valuation on line Columbia, showing the: of the United States, 1, Part 3—Elections by the Executor, a. Total amount of tax imposed • You have an extension of time to enter the amount you entered in the (before adding interest and penalties pay, or “Alternate value” column of item 12 of and before allowing discount), • You file a claim for refund or credit of Part 5—Recapitulation. Otherwise, b. Amount of discount allowed, an overpayment which extends the enter the amount from the “Value at c. Amount of penalties and interest deadline for claiming the deduction. date of death” column. imposed or charged, Note. The deduction is not subject to d. Total amount actually paid in Line 3b. State Death Tax dollar limits. cash, and Deduction e. Date of payment. If you make a section 6166 election to pay the federal estate tax in 2. Any additional proof the IRS The estates of decedents dying installments and make a similar election specifically requests. after December 31, 2004, will be to pay the state death tax in You should file the evidence allowed a deduction for state CAUTION ! installments, see section 2058(b) for requested above with the return, if death taxes, instead of a credit. The exceptions and periods of limitation. possible. Otherwise, send it as soon state death tax credit was repealed as If you transfer property other than after you file the return as possible. of January 1, 2005. cash to the state in payment of state You may take a deduction on line 3b inheritance taxes, the amount you may Line 6 for estate, inheritance, legacy, or claim as a deduction is the lesser of the succession taxes paid as the result of To figure the tentative tax on the state inheritance tax liability discharged the decedent’s death to any state or the amount on line 5, use Table A — or the fair market value (FMV) of the District of Columbia. Unified Rate Schedule, above, and put property on the date of the transfer. For the result on this line. You may claim an anticipated more information on the application of amount of deduction and figure the such transfers, see the principles Lines 4 and 7 federal estate tax on the return before discussed in Revenue Ruling 86-117, the state death taxes have been paid. 1986-2 C.B. 157, prior to the repeal of Three worksheets are provided to help However, the deduction cannot be section 2011. you figure the entries for these lines. -5- Part Instructions