Form 706
 

	706	United States Estate (and Generation-Skipping Transfer) Tax Return
(Rev. August 2021)		▶ Estate of a citizen or resident of the United States (see instructions). To be filed for					OMB No. 1545-0015
Department of the Treasury		decedents dying after December 31, 2021.
Internal Revenue Service		▶ Go to www.irs.gov/Form706 for instructions and the latest information
Part 1—Decedent and Executor	1a Decedent's first name and middle initial (and maiden name, if any)			1b Decedent's last name		2 Decedent's social security no.
	3a City, town, or post office; county; state or province; country; and ZIP or foreign postal code			3b Year domicile established	4 Date of birth	5 Date of death
	6a Name of executor (see instructions)			6b Executor's address (number and street including apartment or suite no.; city, town, or post office; state or province; country; and ZIP or foreign postal code) and phone no
	6c Executor's social security number (see instructions)
						Phone no
	6d If there are multiple executors, check here		and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors.
	7a Name and location of court where will was probated or estate administered						7b Case number
	8 If decedent died testate, check here ▶		and attach a certified copy of the will	9 If you extended the time to file this Form 706, check here ▶
	10 If Schedule R-1 is attached, check here ▶		11 If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), check here ▶
	1 Total gross estate less exclusion (from Part 5—Recapitulation, item 13)					1
	2 Tentative total allowable deductions (from Part 5—Recapitulation, item 24)					2
	3a Tentative taxable estate (subtract line 2 from line 1)					3a	0
	b State death tax deduction					3b	0
	c Taxable estate (subtract line 3b from line 3a)					3c	0
	4 Adjusted taxable gifts (see instructions)					4
Part 2—Tax Computation	5 Add lines 3c and 4					5
	6 Tentative tax on the amount on line 5 from Table A in the instructions					6
	7 Total gift tax paid or payable (see instructions)					7	0
	8 Gross estate tax (subtract line 7 from line 6)					8	0
	9a Basic exclusion amount			9a	0
	b Deceased spousal unused exclusion (DSUE) amount from predeceased spouse(s), if any (from Section D, Part 6—Portability of Deceased Spousal Unused Exclusion)			9b	0
	c Restored exclusion amount (see instructions)			9c	0
	d Applicable exclusion amount (add lines 9a, 9b, and 9c)			9d	0
	e Applicable credit amount (tentative tax on the amount in line 9d from Table A in the instructions)			9e
	10 Adjustment to applicable credit amount (May not exceed $6,000. See instructions.)			10	0
	11 Allowable applicable credit amount (subtract line 10 from line 9e)					11	0
	12 Subtract line 11 from line 8 (but do not enter less than zero)					12	0
	13 Credit for foreign death taxes (from Schedule P). (Attach Form(s) 706-CE.)			13
	14 Credit for tax on prior transfers (from Schedule Q)			14
	15 Total credits (add lines 13 and 14)					15
	16 Net estate tax (subtract line 15 from line 12)					16
	17 Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10)					17
	18 Total transfer taxes (add lines 16 and 17)					18
	19 Prior payments (explain in an attached statement)					19
	20 Balance due (or overpayment) (subtract line 19 from line 18)					20
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than the executor) is based on all information of which preparer has any knowledge.
Sign Here	▲				▲
	Signature of executor					Date
	▲				▲
	Signature of executor					Date
Paid	Print/Type preparer's name		Preparer's signature		Date	Check if self-employed	PTIN
Preparer
Use Only	Firm's name ▶					Firm's EIN ▶
	Firm's address ▶					Phone no.
For Privacy Act and Paperwork Reduction Act Notice, see instructions.				Cat. No. 20548R		Form 706 (Rev. 8-2021)
THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. © 2022 McGraw-Hill Education.

Transcribed Image Text:

Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets: Personal assets Cash and stock Intangible assets (film rights) Real estate Liabilities: Mortgage Other liabilities $ 1,100,000 25,200,000 77,500,000 16,200,000 $ 120,000,000 $ 4,400,000 5,300,000 $ 9,700,000 b. Fill out lines 1 through 12 in part 2 of Form 706 for Tom's estate. Exhibit 25-2. Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets: Personal assets Cash and stock Intangible assets (film rights) Real estate Liabilities: Mortgage Other liabilities $ 1,100,000 25,200,000 77,500,000 16,200,000 $ 120,000,000 $ 4,400,000 5,300,000 $ 9,700,000 b. Fill out lines 1 through 12 in part 2 of Form 706 for Tom's estate. Exhibit 25-2.

Answer rating: 100% (QA)

To fill out lines 1 through 12 in part 2 of Form 706 for Toms estate we need to calculate the relevant values based on the information provided 1 Tota... View the full answer