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Member
Group: Forum Members
Last Login: 9/25/2009 9:46:05 AM
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| Skip persons share of estate on 706 Part 4, page 2 is 495,000 and there is no GST tax. The schedule R, Part 1 Line 4 shows 505,000 which is the share of the assets without regard to the expenses reported on J,K,L. I am wondering if I have to work around the program or if it is correct to use the share of the gross estate without regarding to expenses when preparing the schedule R. Since there is no GST tax it is not a tax issue, I would just like to understand the proper way to report this for the future. Thank you for your help. Susan E. Cohen scohen@sscllp.com
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Member
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Last Login: 10/9/2009 1:02:49 PM
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| The amount to report on Schedule R would be net of the expenses borne by the interest passing to the skip person.
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So, if the skip person was to receive 20% of the estate after all expenses of estate administration were paid, then those expenses would be considered borne by the interest passing to the skip person? All the assets of the estate were liquidated before any distribution of cash was made to the skip person or any other beneficiary.
Thanks for responding.
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Member
Group: Forum Members
Last Login: 10/9/2009 1:02:49 PM
Posts: 7,
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| Yes, the expenses allocated to the interest passing to the skip-person would reduce the amount of GSTT exemption to be allocated to that interest.
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