SOI Tax Stats - Nonresident Alien Estate Tax Study Metadata


What is the Nonresident Alien Estate Tax?

The nonresident alien estate tax is one part of the Federal transfer tax system, which is incurred on transfers of property at death.  The nonresident alien estate tax, reported on forms 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, must be filed by nonresident aliens with $60,000 or more in U.S. gross assets. 

The U.S. gross estate of nonresident aliens may be composed of tangible personal or real property, as well as intangible assets such as stock or debt obligations.  Tangible personal property and real property owned by the nonresident alien must be physically located in the United States for it to be included in the U.S. gross estate.  Intangible property is included in the U.S. gross estate based on different criteria.  The stock of U.S. corporations is considered part of the U.S. gross estate regardless of where stock certificates are physically located.   Debt obligations issued by a U.S. citizen, resident, business, trust, or Governmental organization are likewise treated as part of the U.S. gross estate of nonresident aliens.  For estate tax purposes, the values of the nonresident alien decedent’s U.S. assets are based on the fair market value at either the decedent's date of death, or at aln alternate valuation date.  The alternate valuation date, which must be within six months following the date of death, may only be used if the value of the estate, as well as the estate tax, is reduced between the date of death and the alternate date.

There are two broad types of nonresident alien estate tax forms filed: treaty status returns and nontreaty status returns. Treaty status returns are filed for nonresident aliens who held assets in the United States worth $60,000 or more at the time of death, and  who were domiciled in countries with which the U.S. had an applicable estate tax treaty.  The United States holds estate tax treaties with 17 countries:  Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, Norway, Republic of South Africa, Sweden, Switzerland, and the United Kingdom.  The treaties differ among countries, but the basic provisions include mutual administrative assistance between the U.S. and each country and the avoidance of double taxation.  Nontreaty status returns were filed for nonresident aliens who held assets in the United States worth $60,000 or more at the time of death but were domiciled in countries without an applicable estate tax treaty. 

The estates of U.S. citizens and residents are subject to the laws of the regular Federal estate tax

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Selected Terms and Concepts Data Sources and Limitations

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