TRUST TAX RETURNS
Estate Tax Services & Form 706 Estate
Return Preparation
Serving as an executor or personal representative involves important financial responsibilities. You may need to identify estate assets, gather valuations, review debts, and determine whether a federal estate tax return is required.
At David I Levine Bookkeeping & Tax Services, I provide estate tax services and Form 706 preparation to help clients address these obligations.
FILING REQUIREMENTS
Understanding Form 706 Estate Tax Requirements
IRS Form 706 is used to report certain estates for federal estate tax purposes. Filing requirements generally depend on the estate's value, adjusted taxable gifts, and the federal threshold for the year of death.
Some estates below the mandatory filing threshold may still file Form 706 to preserve a deceased spouse's unused estate tax exclusion for the surviving spouse. This is known as a portability election.
Estate tax reporting is separate from probate and estate income tax filing. I help clients review the relevant circumstances and understand which reporting responsibilities may apply.
OUR SERVICES
What's Included in My Estate Tax Services?
Estate Asset Reporting
Form 706 may require reporting real estate, bank accounts, investments, business interests, and certain life insurance proceeds. I review available records to organize estate assets and identify items that may require additional valuation information.
Estate Deductions and Expenses
Certain debts, administration expenses, and other amounts may qualify as estate tax deductions. I examine supporting documentation and evaluate applicable deductions. Not every expense associated with settling an estate is deductible for federal estate tax purposes.
Lifetime Gifts and Prior Tax Filings
Some gifts made during the decedent's lifetime can affect estate tax calculations. I review available gift tax information, including prior Forms 709 when relevant, to address reporting requirements and related tax considerations.
Form 706 Preparation
I prepare federal estate tax returns using the estate's financial records, asset valuations, and supporting documentation. I also explain reporting questions and identify information that needs clarification before the return is completed.
THE VALUE
Why Accurate Estate Tax Preparation Matters
Estate tax reporting follows rules that differ from ordinary income tax preparation.
For example, assets are generally valued using their fair market value at the applicable valuation date, rather than their original purchase price. Certain ownership arrangements and lifetime transfers may also affect what must be included in the estate.
Executors may need records from banks, appraisers, attorneys, and other parties. I help organize the relevant tax information and identify issues that require further attention.
THE PROCESS
My Form 706 Preparation Process
- Discuss the Estate:We'll review the date of death, estate circumstances, available asset information, and potential filing obligations.
Review Financial Records:I'll examine asset valuations, debts, expenses, and relevant prior gift tax filings to identify the information required.
Prepare the Return:I'll prepare the applicable Form 706 reporting and discuss significant items, outstanding documentation, and filing steps.
L O C A T I O N S
Estate Tax Services Nationwide
I serve clients throughout the United States, with particular attention to Massachusetts and Tennessee, including Lexington, MA 02420.
State estate tax rules differ from federal requirements. Massachusetts has its own estate tax system, while Tennessee does not currently impose a state estate or inheritance tax. The decedent's domicile and property locations may affect applicable state obligations.
FAQ
Frequently Asked Questions
No. Filing generally depends on the estate's value, adjusted taxable gifts, and the federal threshold for the year of death. Some estates file to elect portability even when a return is not otherwise required.
Form 706 is generally due nine months after the date of death. Filing extensions may be available, but an extension to file does not automatically extend the payment deadline.
Form 706 addresses federal estate tax reporting. Form 1041 reports certain income earned by an estate or trust.
Some assets require professional valuations or additional supporting documentation. Requirements depend on the type of property and the estate's circumstances.
Get Started
Get Help With Form 706 Estate Tax Preparation
If you're responsible for an estate, I can help you understand the tax filing requirements and prepare the information needed for Form 706. Contact David I Levine Bookkeeping & Tax Services to discuss your estate tax preparation needs.
David I Levine Bookkeeping & Tax Services.
