Worksheet for Schedule Q--Credit for Tax on Prior Transfers

Worksheet for Schedule Q--Credit for Tax on Prior Transfers

Summary: This is an example of a Schedule Q which must be completed and filed if you claim a credit on line 14 of Part 2, Tax Computation of Form 706.

Part I: Transferor's tax on prior transfers

Item Transferor (From Schedule Q) A Transferor (From Schedule Q) B Transferor (From Schedule Q) C Total for all transfers (line 8 only)
1. Gross value of prior transfer to this transferee (text field) (text field) (text field) (shaded area)
2. Death taxes payable from prior transfer (text field) (text field) (text field) (shaded area)
3. Encumbrances allocable to prior transfer (text field) (text field) (text field) (shaded area)
4. Obligations allocable to prior transfer (text field) (text field) (text field) (shaded area)
5. Marital deduction applicable to line 1 above, as shown on transferor's Form 706 (text field) (text field) (text field) (shaded area)
6. TOTAL. Add lines 2, 3, 4, and 5 (text field) (text field) (text field) (shaded area)
7. Net value of transfers. Subtract line 6 from line 1 (text field) (text field) (text field) (shaded area)
8. Net value of transfers. Add columns A, B, and C of line 7 (text field) (text field) (text field) (text field)
9. Transferor's taxable estate (text field) (text field) (text field) (shaded area)
10. Federal estate tax paid (text field) (text field) (text field) (shaded area)
11. State death taxes paid (text field) (text field) (text field) (shaded area)
12. Foreign death taxes paid (text field) (text field) (text field) (shaded area)
13. Other death taxes paid (text field) (text field) (text field) (shaded area)
14. TOTAL taxes paid. Add lines 10, 11, 12, and 13 (text field) (text field) (text field) (shaded area)
15. Value of transferor's estate. Subtract line 14 from line 9 (text field) (text field) (text field) (shaded area)
16. Net Federal estate tax paid on transferor's estate (text field) (text field) (text field) (shaded area)
17. Credit for gift tax paid on transferor's estate for pre-1977 gifts (section 2012) (text field) (text field) (text field) (shaded area)
18. Credit allowed transferor's estate for tax on prior transfers from prior transferor(s) who died within 10 years before death of decedent (text field) (text field) (text field) (shaded area)
19. Tax on transferor's estate. Add lines 16, 17, and 18 (text field) (text field) (text field) (shaded area)
20. Transferor's tax on prior transfers ((line 7 divided by line 15) times line 19 of respective estates) (text field) (text field) (text field) (shaded area)

Part II: Transferee's tax on prior transfers

"21. Transferee's actual tax before allowance of credit for prior transfers. (see instructions)" field
"22. Total gross estate of transferee from line 1 of Part 2—Tax Computation, page 1, Form 706" field
"23. Net value of all transfers from line 8 of this worksheet" field
"24. Transferee's reduced gross estate. Subtract line 23 from line 22" field
"25. Total debts and deductions (not including marital and charitable deductions) (line 3b of Part 2—Tax Computation, page 1, and items 18, 19, and 20 of the Recapitulation, page 3, Form 706)" field
"26. Marital deduction from item 21, Recapitulation, page 3, Form 706 (see instructions)" field
"27. Charitable bequests from item 22, Recapitulation, page 3, Form 706" field
"28. Charitable deduction proportion ([line 23 divided by (line 22 minus line 25)] times line 27)" field
"29. Reduced charitable deduction. Subtract line 28 from line 27" field
"30. Transferee's deduction as adjusted. Add lines 25, 26, and 29" field
"31(a) Transferee's reduced taxable estate. Subtract line 30 from line 24" field
"31(b) Adjusted taxable gifts" field
"31(c) Total reduced taxable estate. Add lines 31(a) and 31(b)" field
"32. Tentative tax on reduced taxable estate" field
"33(a) Post-1976 gift taxes paid" field
"33(b) Applicable credit amount (line 11, page 1, Form 706)" field
"33(c) Section 2012 gift tax credit" field
"33(d) Section 2014 foreign death tax credit" field
"33(e) Total credits. Add lines 33(a) through 33 (d)" field
"34. Net tax on reduced taxable estate. Subtract line 33(e) from line 32" field
"35. Transferee's tax on prior transfers. Subtract line 34 from line 21" field