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Table of Unified Credits See also instructions for line 3, Part taken (on line 15) for pre-1977 federal (as Recalculated for 2011 Rates) 4—General Information, below, and gift taxes. section 2010(c)(5). Canadian marital credit. In addition Period Unified Credit to using line 15 to report credit for Line 10. Adjustment to 1977 (Quarters 1 and 2) $6,000 federal gift taxes on pre-1977 gifts, you may also use line 15 to claim the Unified Credit (applicable 1977 (Quarters 3 and 4) $30,000 Canadian marital credit, where credit amount) 1978 $34,000 applicable. If the decedent made gifts (including When taking the marital credit under 1979 $38,000 gifts made by the decedent’s spouse the 1995 Canadian Protocol: and treated as made by the decedent 1980 $42,500 • Include the credit in the amount on by reason of gift splitting) after line 15 and 1981 $47,000 September 8, 1976, and before • Identify and enter the amount of the January 1, 1977, for which the 1982 $62,800 credit you are taking on the dotted line decedent claimed a specific exemption, to the left of the entry space for line 15 1983 $79,300 the unified credit (applicable credit on page 1 of Form 706 with a notation, amount) on this estate tax return must 1984 $96,300 “Canadian marital credit.” be reduced. The reduction is figured by entering 20% of the specific exemption Also, attach a statement to the return 1985 $121,800 claimed for these gifts. that refers to the treaty, waives QDOT 1986 $155,800 rights, and shows the computation of Note. The specific exemption was the marital credit. See the 1995 1987 through 1997 $190,800 allowed by section 2521 for gifts made Canadian income tax treaty protocol for before January 1, 1977. 1998 $199,550 details on figuring the credit. If the decedent did not make any 1999 $208,300 gifts between September 8, 1976, and 2000 and 2001 $217,050 January 1, 1977, or if the decedent Part 3—Elections by the made gifts during that period but did not 2002 through 2010 $330,800 Executor claim the specific exemption, enter 2011 $1,730,800 zero. Note. For decedents dying in 2011, the election to allow the decedent’s Line 15. Total Credits surviving spouse to use the decedent’s Note. In figuring the line 7 amount, do unused exclusion amount is made by Generally, line 15 is used to report the not include any tax paid or payable on filing a timely and complete Form 706. total of credit for foreign death taxes gifts made before 1977. The line 7 See instructions for line 4, Part (line 13) and credit for tax on prior amount is a hypothetical figure used to 4—General Information, below and transfers (line 14). calculate the estate tax. section 2010(c)(4) and (c)(5). However, you may also use line 15 Special treatment of split gifts. to report credit taken for federal gift These special rules apply only if: Line 1. Alternate Valuation taxes imposed by Chapter 12 of the • The decedent’s spouse predeceased Code, and the corresponding provisions the decedent; See the example showing the of prior laws, on certain transfers the • The decedent’s spouse made gifts use of Schedule B where the decedent made before January 1, that were “split” with the decedent alternate valuation is adopted. TIP 1977, that are included in the gross under the rules of section 2513; Unless you elect at the time you file estate. The credit cannot be more than • The decedent was the “consenting the return to adopt alternate valuation the amount figured by the following spouse” for those split gifts, as that as authorized by section 2032, you formula: term is used on Form 709; and must value all property included in the Gross estate tax minus (the sum • The split gifts were included in the gross estate on the date of the of the state death taxes and decedent’s spouse’s gross estate under decedent’s death. Alternate valuation unified credit) Value of section 2035. x included cannot be applied to only a part of the Value of gross estate minus (the gift If all four conditions above are met, property. sum of the deductions for do not include these gifts on line 4 of charitable, public, and similar You may elect special-use valuation the Tax Computation and do not gifts and bequests and marital (line 2) in addition to alternate deduction) include the gift taxes payable on these valuation. gifts on line 7 of the Tax Computation. You may not elect alternate When taking the credit for pre-1977 These adjustments are incorporated valuation unless the election will federal gift taxes: into the worksheets. decrease both the value of the gross • Include the credit in the amount on estate and the sum (reduced by line 15 and Line 9. Maximum Unified allowable credits) of the estate and • Identify and enter the amount of the Credit (applicable credit GST taxes payable by reason of the credit you are taking on the dotted line amount) decedent’s death for the property to the left of the entry space for line 15 includible in the decedent’s gross The maximum unified credit (applicable on page 1 of Form 706 with a notation, estate. credit amount) is the tentative tax on “section 2012 credit.” the applicable exclusion amount. For You elect alternate valuation by For more information, see the estates of decedents dying in 2011, the checking “Yes” on line 1 and filing Form regulations under section 2012. This applicable exclusion amount equals: 706. You may make a protective computation may be made using Form alternate valuation election by checking • The basic exclusion amount of 4808. Attach a copy of a completed “Yes” on line 1, writing the word $5,000,000, PLUS Form 4808 or the computation of the “protective,” and filing Form 706 using • The deceased spousal unused credit. Also, attach all available copies regular values. exclusion amount (DSUE amount), in of Forms 709 filed by the decedent to the case of a decedent having a help verify the amounts entered on Once made, the election may not be predeceased spouse dying in 2011. lines 4 and 7, and the amount of credit revoked. The election may be made on -7- Part Instructions