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GEM706 Training Guide

1. R tax on the amount on Ene Amm Tabla A on page 3 7 Total git tax pad cr payable with respect to ghis iha decedent after Dacember 31 1876 Include gift taxes by the decedent s spouse Tor a a share cl split gifts ssction 2513 only il the decedent was the donor of these gets and r induci ble in th decedent s gross estaba see rest rutina LI LJ a a a L a a Gross estate tax subtract line 7 dr o s p e E B amp 2 Tax Computation m 9 Ma mum unified credit applicable imi ageret estate tax 3 1 730 800 0 10 Acjustment to unified credit applicable 1 amount Thes codinctmant may nnt awned Ef TV Baa nana od the inetmaefine in l non Phone net OM B No 1545 0015 Mecedeant 5 EAN 5535 Date ot death 4 1 2011 eb xecutorsaddress umber and street e cuding apartment or suite no city town or poet office state and ZIP code and phone no WW ihia Form TOB check bere IL Be 65h zb 200 Gd T 532 437 20 138 956 C 7 383 481 22 100 000 00 7 493 481 22 2 503 518 43 0 00 2 503 518 43 GEM706 always displays a print preview To view the full page click directly to the left of the Zoom percentage TIL EFIEENGZEZCUR Unified Slates Estate Generalion Ekipping ide renee s Travelon Tax Return DIU a oipe oe ees pi Fap Lie I D eer eat E ees ai arn me rorlscue Tide bd ips dat
2. Qe Federal Estate Tax Returns 2011 Estate of John P Sesith Eg g jJi F e Utte Preferencet Melp Fam 906 Page Dolo Emy Fom 706 Page 2 Form 706 Page 3 1 Decedert Infoemeton 2 Benetcews 3 Prepaver and E state Represematve Schedule A Fea Estate Schedule 4 1 Sachen 20024 Valuation Schedule B Stocks and Bondi Schedule C Mortgages Notes and Cash Schodde D leeurance on the Decedents Lie Schedule E Pat t Qualfesd Jort intenests Schedule L Pat 2 Al Other Jort irtee Schedule F Mecekaneout Property amp Geneenl and Tax Related Intcemeaton 7 GA Tax Rewnes amp Secton 20324 Electon Secton 6166 Electon 10 interrelated Mantel Deducton 11 interrelated Chartable Deducton 12 Residue informaton 13 State Death Tax Infcemabon Prom 14 Miscellaneous Reports 15 Form 706 16 Section 232A Electon 17 Secton 6166 Election 18 Supporting Forms Usites 19 GEMAcct Goteway 20 GEM709 Getreny 21 Stato Aotems Schodde G Toasters Dung Decoders Lie Schedule M Poren of Appontment Sehedde Arrt Schedule J Pat A Funeral Expernes Smi Pat B Admeenaton E perot Do you wish to round calculations Yet Round al calculations No Do net ard catoubstore NARBHING THIS L LCTION I FLHMANLN Altay you malus fig election or each Bb fuat vou inaita you ane noi permed to change this election for tha la vcra nne about Ip ining
3. ett Estate Pianagemen uiti GEM706 Training Guide Copyright 2011 by Gillett Publishing LLC All rights reserved Except as permitted under the United States Copyright Act of 1976 no part of this publication may be reproduced or distributed in any form or by any means or stored in a data base or retrieval system without written permission of Gillett Publishing LLC Use of the program documentation and related material is subject to the restrictions contained in the accompanying license agreement Gillett Publishing LLC 1920 Pyramid Peak Loveland CO 80538 www GillettPublishing com Table of Contents Chapter 1 Introduction Chapter 2 Creating and Accessing Data Files 82 01 2 02 2 03 2 04 2 05 2 06 82 07 83 01 3 02 3 03 83 04 3 05 3 06 4 01 84 02 4 03 84 04 4 05 4 06 4 07 4 08 84 09 4 10 84 11 85 01 5 02 5 03 5 04 Introduction Creating Data Files Location of Data Files Data File Names Accessing Existing Data Files Creating Data File Copies Back Ups Editing File Names Chapter 3 Data Input Menus and Options Introduction Function Keys and Cursor Control Menu Bar Help Preferences Utilities Chapter 4 General Data Entry Introduction State Death Tax Information Residue Information Decedent Information Beneficiaries Preparer and Estate Representative Fiduciaries Elections General and Tax Related Information Gift Tax Retur
4. Eyo ane propering 4 Fareaysvaneas Inhartenca Tex Forus you muri elect Ia Oe noi mund eniculssinns Bou enr propering 4 Corneni Estate Tex Furium you reel elect vied Raund all ealculetiont You must first indicate whether you desire to compute the federal estate tax accurate to the nearest penny or whether you desire to round all calculations to the nearest dollar As the screen indicates this election is irrevocable After entering your response click in the top right corner of the window or type F9 to exit the client data file and to return to the GEMS administrator 2 05 Accessing Existing Data Files When you select GEM706 from the Administrator to edit an existing file you can either select a file from a list of recent files or open a data file from either the default folder or you can browse to a different folder Chapter 2 Creating and Accessing Data Files 2 05 Accessing Existing Data Files Accessing Recent Files Again select GEM706 from the GEMS Administrator and GEMS displays the last twelve files you have worked on GillettPublishing com j Creata Hir Loses E saclay Piecen Files CXGEMBAT alor Fl Joner FET CGE MS MP udolph A Ruppe FE T CAGES Donald T Alcott FET CGE WES ap T Kona FET CAGEMS Donna E Cris FET E Mie MESS E Bleck FE T CAGES Had E Starkey FET CAGE WEG aio T Father FE T CAGES Thomaa T Tank FET E Mir MS sah A Giad FE T COEM S uen T Joner FE
5. Schaddall osa c deponimin rae _ Sched e Pat A Fuer Expenses Schedule Part 0 Adminitiration Expense Fusecsand ani Fes Shah K Fat 1 Cheti of Heime Deter Schedule F Pal 2 Halga and Lerni Schedule L Fat 1 Ha Loge Durrah anon Seheduls L Pat Z Ligenses en Property Hot Subyect l Cla Scheda H NH A lo Sung Hocus DTIP Property All Ot Property Gh 0 Chia Pki sore Soaribos Gots aral Bequests SchaddaP Credi Les Fanin Daath laa Schedule Q Credit bor T ae on Fri Trani ree abd MAN kepro Trancles Fac Deest Ske From a Trudi ERALA Fail n T F vamniinn Barcanrillalien 17 Chapter 3 Data Input Menus and Options 3 06 Utilities You can define state death taxes for two different states Click on Primary to display a tax table that has already been entered gt Federal Estate Tax Returns 2011 Estate of John P Sith Pile Ueber Preferences Hele Farm 708 Page 1 Deis Entry Ferm 71E Page 2 1 Decadent Information Tp ee 2 Benehciones suet Geet Tax 3 Preparer and Estate Feprosi densify this state death tax Decoupled state Mice Is state death tax imposed at beneficiary or estate level C Beneficiary Estate 7 Reduce taxable estate for state death lax purposes by 350 0007 Yes C No 6 General and Tax Related in 7 Gif Tex Fiebre Is siate tax based on prior federal credit for state death taxes fv Yes C Mo 8 Socbon 20924 Election 8 Section 6166 Election 10 Inharre
6. Sechon FUSE V akin i Schedule B Stocks and Bond f General and Tax Related Iniormason auk ace 7 Gift Te Retume B Section 20524 Election 3 Section 6166 Electon Yes c Wo Should this executor be listed on page 1 s the one to 10 lneretsted Marital Deduct be contacted by the IRS 11 Imomelated Cheritebla Do Ja po 12 Residus Intonation executor a beneficiary 13 State Death Tax Information 0 213 17 Section due date DG and 12 18 5 e a M es so EHE co M Land 12 01 Matariy date DEO E DI Matuity dae 05 01 2013 mo aia Siete Erik creep kel seccion Pause reae Gh 174 EISE To dribenesl or abe denn accus accio deiir cis 3 Fubeliy Ecken Aciu Aad ruber 54 bts 4 IU DUE ciiai of depend vals Fus Maona Bark Ces nia 2733573125 Inbenesid cote 4 TIG Mauny date 1 551 1 Interest pei abeo bem accnaed ar oi decedeni n dea 2 58 SPD ceriicate ol deponit wath Cental Diote Bank Cert number 57243248 Imiss rate 308 Hauis dle TR nieres cn above Bem accnued ar of decedent s death Ef Chelsie een Go Federal Estate Tax Returns 2011 Estate of John P Sm Foe Unies Preferences Helg IT ram JU Page 1 Data Entry Fam 705 Page 2 1 Decadent Indormoation Form IS Page 3 2 Baneficimrias mp Schedule A leal Esin malve 1 0 pem arm besed im Muscatine County bawa mone parheubsiy descsibed as folewr The south hall oi Sechon T6 1 2800000 Pire oli ee 2 160 acre form located in Cedar County lo
7. 128000000 is seii EI ar 3 160 cere lam located in Cedar County kua mere particulare dembel as follows The northeast quarter on Serion 3 720 0000 E E Schedule A1 Sector 20324 Valushion 5 Elections i Schedule B Stocks and Dondi 6 General and Tax Ralmed Intonation 1 Bellrouth Cop Uniwsue 42622 Number of units 4 100 Exchange NYSE Tro 00 T Gift Tex Fuetums 2 Fano Company Lnd vaie 18 50 Number of uris 2 500 Exchange NYSE 46250000 8 Section 20324 Election z 3 HH Copetation Unt value 52 50 Number ol units 22000 Exchange NYSE 105 090 00 3 Sechon 6166 Elector Ao Dividand on above sock declaned pint bo decedens death 455 00 10 bvereand Mevital Deduct raed City Dank and Tasit Dni alus 24 25 Humb of ursts 4000 Exchange Hapdaq 30 ooo qu 11 interrelated Chantable Dedit SHC Cinere inc ratum 175 70 Humb of ursi S00 Exchange HSE zip 7 ISH Une aka nb o Murs iof ete 1 IK Ecke Wak Tz ah 12 Resi Inf rrmation 2 due Info o f Haoa Garp Lil dom F207 80 Mune cli arda HA barge Ae 1H 13 State Death Tax Info TED Franklin Irairis Fured Class E Lir vaka E377 Museen of orai 16 2509 00 BLTS Print 5 Vorsguaadl SAP IE Erden Fur Lira woken PULE hues ed ursi 5734 auus 14 Miscellaneous Fhe 10 Fatri index Foal Urd volue PASA Biases cd unu 17 046 Ez Taka FT 11 Fiedty Conia Fured Wr wala 5525 Number ol unit 1 471 Emi ps 15 Em 76 i Fs 12 Mapin Wirt value 55 57 Mumbes of unii 3 1273 235p Ue 16 Section 203 13 50 000 US Tressuy bremen rale
8. Foam Ub Page 1 Foam 706 Page 2 1 Decadent Infomation Fem PE Page 3 2 Reneficimias Schedule A Heal Este 3 Preparer and Esiese Flepresentatnre 7 AA sere hum lenabed in Muscahna Loup be mons pairu desc as ikes The south Fal ol Sechon T 1 553 UDEL CI 4 Executor 2 TED mere Parm located in Codd Coni less mone pinisah descsibed as lokar The raihan quater on Section 3 720 000 00 em E ehedule AJ Sect HIM Vaus Elections M Schedule B Stocks and Bondy b General and Tax Releted Inicemason Beltouth Cop Unit value 26 22 Humber of units 4 100 Exchange WYSE 10750200 e 7 Gift Te Fietums 2 FodMoter Compary Und vaks 18 50 Hunis of ursi 2 500 Exchange HYSE B Section 20324 Election HH Corporation Unit vidue 5250 Number l unit 2 000 Exchange MSE 9 Secton 6166 Electon Dividend on above stock declared piii to decedent s death V bvierelanod Marital Deduct aid City Bank and Touit Lini wakes 24 25 Humb of uris 4000 Exchanges Habdaq 11 interested Chantable Dedit SHC Comnmurscatorn Ic Un wale 25 75 Humber of unite G0 Exchange NYSE l T a re ih aia 125378 12 Residue Information Mamina X isa 250 00 13 State Death Tax informigtioh Peu Print ta 5 o6 1532770 er 14 Fercetaneoue Et 813 7 amp 15 Form 708 SRE 16 Section i r i uriy date 12 01 2013 17 Section J68 El ction 3 be 5 EX Inherent due date 06 01 and 12 13 280 1 Susana s Lilijan V 15 5100 Carter Lake l
9. Indicae dacensed spouse s 17 Section amp Name E 18 Supportig Socal secunb number F 14 Miacella 15 Farm 70 One of denih C Singo C Legally seperated C Divarced Iriciscnto date decree Becr feel With nes pue to probalt or sait inmenso Hama and location of court ase number Oeath corse nurmhor and issuing euthornty The first data field requests the decedent s first name and middle initial You entered this information when you initialized the data file You must abbreviate your answer in the event that it is longer than the field length GEM706 sometimes scrolls your response and displays only the first portion when you exit the data field To edit a data field position the cursor using the mouse or the and keys In addition Ctrl Advances to the next word Ctrl Returns to the previous word 12 Chapter 3 Data Input Menus and Options 3 04 Help End advances to the end of the data field Home returns to the beginning of the data field Tab and Enter advances to the next data field Shift Tab returns to the previous data field Click WM or type F9 to close the active window and return to the Main Menu Dollar amounts GEM706 places the decimal point immediately to the right of the last digit that you entered Thus you may enter 1 125 00 by typing any of the following strings 1 125 1 125 00 1 4125 1 125 00 1125 1125 00 You can enter a negative number by typing a minus sign or by encl
10. Leper Poles O TE 4 4 Bl P dj d m B lex Jom P SMITH ESTATE MOTE OF ELECTION UNDER SECTION 6166 OF THE TERNAL REVENUE CODE The anderi gned as Exectue of tf Estate of Jobn P mih deceased hereby eects in malos pameni ol Bora anish Du under Section 06155 3693 iniaa ai Pood 1 That ier decedents nac in John P Sm andina decedent s socal security TEHE is 111 222 2323 2 Thatta dececend dad en Apri 1 2711 a remisani of Muscatine County Iowa 73072 Thait value od Ev adagi gross eiae OES in acconmanc e win Tor argu suns provided ty Sacton A TAS ia 7 rz 638 28 4 Thatta Mole fermi ahoan on Eve feral astaha bir nior Rom m Vachigmat aia a 1275 00000 A 3 TOOD A J 390000000 Total 5255 008 00 wie interests i dose Did busmesa sahin Exe meaning ol Sadio 6159456010 That tg Kclicwinz diileni eti forth fhe Pacis koering he diss for Ese conckckion Boal the estahe qualities for Ine payari ol ie estate bam in ingtaliments E Thalta aeeuni of gitike bir do be paid in inddalimants ia 257 583 H T That deferred estale aa adii be paid in 10 equal annual installments commencing on January 1 DOIT ai follows a January 2613 ipikit only beret only Mbwrestoniy Abbti 85 758 JI plus inderead 5758 23 phus inerat 55758 33 plusintienest 65 758 mus interest 65 T58 33 piur interest 65 T58 33 phus inaral amp 5 759 23 plus interest 85 T5B 23 plus intarasi GEM706 prints the notice of election and a
11. d mHBIe 5 B INTEREST ON FEDERAL TAX UNDERPAYMENT From 04 13 2005 to 06 01 2008 Accrual Period Balance Interest Accrued Interest Accrued From To Days Accruing Interest Before Period 4 14 2005 6 30 2005 78 56 432 00 0 00 7 1 2005 9 30 2005 92 57 160 16 728 16 10 1 2005 12 31 2005 92 58 031 10 1 599 10 1 032 87 1 1 2006 3 31 2006 90 59 063 97 2 631 97 1 028 20 4 1 2006 6 30 2006 91 80 092 17 3 680 17 1 057 83 7 1 2006 9 30 2006 92 k 61 150 00 4 718 00 1 245 43 10 1 2006 12 31 2006 92 62 395 43 5 963 43 1 270 79 1 1 2007 3 31 2007 90 63 666 22 7 234 22 1 268 20 4 1 2007 6 30 2007 91 64 934 42 8 502 42 1 307 98 7 1 2007 9 30 2007 92 66 242 40 9 810 40 1 349 14 10 1 2007 12 31 2007 92 67 591 54 11 159 54 1 376 62 1 1 2008 3 31 2008 91 68 968 16 12 536 16 1 210 73 4 1 2008 6 1 2008 62 70 178 89 13 746 89 716 87 Total Interest Accrued 14 463 76 The options in the top left portion of the window permit you to send the report to your printer or to create a PDF Word or Excel file Click GR or type F9 to return to the Main Menu Remaining Utilities Options The remaining options under Utilities on the menu bar at the top of the window permit you to define preparers that you can then reference within each data file and to interface with EVP to value stocks bonds and other securities 20 Chapter 4 General Data Entry 4 01 Introduction When you create a new data file or wh
12. 2 04 Data File Names GEM706 asks you to enter the file name to identify the estate tax data file Although the name does not have to be the same as the decedent s name you should select a name that will permit you to easily identify the file GEMS automatically assigns a program file extension to the data file that associates the file with a specific program module Estate tax return files have a FET extension accounting files have a FAR file extension and gift tax return files have a FGT file extension After you have entered the file name and click Open and GEM706 requests the decedent s name and date of death Complete the window as follows Chapter 2 Creating and Accessing Data Files 2 05 Accessing Existing Data Files GillettPublishing com Authorization Updates About Create Federal rotate Ta Enter the fallowang decedand information First neu end middle imal John F TURNA Lasiname Smith GEMS Tess Cate al death piani hm WARNING THE DECEDENT S YEAR DF DEATH IS PERMANENT ABR Gugh you ane parmised t adit ha decedent name and the month and day f death you Ars m t painted t changa the year dd death toe the file yo ane about t initialize OK Cancel P Although you will be permitted to edit the name and date of death after the file is initialized GEM706 does not permit you to change the year of death Click OK to advance to the Main Menu
13. 3300 000 0D Sehon riiv 160 acre farm located in Cedar County lowa more 400 acre farm located m Muscatine County lowe mx 153251 27 6581375 2023 82 0 amp 56 255 00 43 725 00 146 33 50 075 00 311 48 32 586 00 2553 1567 15344 74 10000 00 215355 ow 4 100 000 cethcate ol deposi wih Fest Nobonal Bark Cot number 273929336 Inbesest iate 4 10S Mohady date 12 3 To Indewest on above dem accrued as of decederi s death eT nmm 2d he od dee eth Fo Chus Du Put Eos 983 ta b a wee F7 Add ltem 41 Chapter 4 General Data Entry 4 11 Section 6166 Election GEM706 lists in the upper portion of the window those items that you have already identified as business interests on the various schedules You must answer the questions in the lower portion of the window with respect to each Business interest After you complete the lower portion of the window with respect to the first Business interest highlight the next interest and continue until you have answered the questions with respect to each interest The first question in the lower portion of the window requests the amount of mortgages secured by real property utilized in the closely held business GEM706 subtracts the amount of mortgages from the value of the closely held business to determine whether the estate satisfies the threshold requirement of IRC 6166 a 1 and to calculate the maximum amount of federal estate tax which it can defer The last question reque
14. Schedule A 1 10 lenerrelatad Ma d 11 leemolatad Chg 375 12 Residue Infan ee 13 State Death T LES Print 400 acra farm located in Muscatine County lowa mera enc 14 Miscellaneous particulam described as follows EINE 15 Fom 706 am 16 Section 20329 Tha w st half and the northwest quarter of tha northeast oe 17 Section 6166 F quarter of Section 22 Range 2 Weel of the Sth 18 upon afo Principal Mendian in Muscat County Iowa Litilibe s 19 oea 20 GEMTIS Gan Fithian FIT WE 21 St tis Atuma Check to tranifer io Schedule M SUES leschorsi m E ro Dex pea 15244 74 annon 2183 Pm R t N FS Oe nn Note that GEM706 has inserted the description opposite item number 3 in the second word processor window Remember GEM706 permits you to define macros by advancing to the Utilities option on the menu bar See 3 06 You can also copy cut and paste text by using the Windows functionality 5 04 Page Break Above the header and description fields there is a check box which directs GEM706 to begin this item or this appendage at the top of the following continuation page when printing Form 706 This permits you to override GEM706 s placement of a page break If you enter a page break for the first item on a schedule all of that schedule s items will be printed on continuation pages This feature may be helpful when preparing state returns 5 05 Header You can enter a header for items and app
15. Taxable Gifts Reconciliation 6581375 18 Supporyig Forms CQ a 23 582 06 Udiies x y Schedule Q Worksheet yl Maturly date 12 01 2013 66 265 00 mi t a or date RVC d 12 701 Mahardy diste ORI 49725 00 19 G Gateway 146 33 20 GEMIS Gateway Select All 3 01 and OSU Maburly date 09 01 2013 50 075 00 21 State Potums 311 48 C Mortgages Notes and Cau Feet National Dank NOW checking accout Acct number 161 1332 22 506 00 2 Consi State Dank money market account Acct number 5572 0900 2335 92 Intesett on above tem accrued t of decedert s deat 1567 3 Fidelity Brokerage Account Acct number 54063584 15 344 74 4 100 000 certificate of deport with First National Bark Cert number 27382336 Interest rate 4 10 Maturity date 12 1 1 inteme on above tem accrued ar of decedert s death 21535 2 8 75 000 certificate of deport vith Cortral State Bank Cert number 5784 3044 Interest rate 399 Maturity date 11 20 06 70 000 00 1 iriam an heven Bem cenae ae ol decedeni s cath 47 T The Tax Calculation Summary includes a summary of the tax calculation on page 1 Form 706 the schedule recapitulation on page 3 Form 706 and a summary of the marital deduction on Schedule M and the charitable deduction on Schedule O It also includes a summary of Schedule P Credit for Foreign Death Taxes The Residue Report details the manner in which GEM706 computed the residue of the estate and intervivos trust You can refer to the residues when completing
16. 05 The next data field permits you to enter the amount of any other preresiduary gifts that are not reflected on the preceding line Your entry will appear as a single adjustment on the residue report GEM706 also permits you to enter two additional negative adjustments If you only want to enter a single adjustment and if the description exceeds the space available you can use both lines to describe the adjustment You should enter these adjustments as positive amounts As discussed above the residue has already been reduced by the administration expenses listed on Schedule J However if those expenses are payable from the estate s income they may not reduce the amount passing to the estate s residuary beneficiaries The first data field in the lower portion of the window permits you to enter the administration expenses included on Schedule J which are payable from the estate s income permitting GEM706 to restore this amount to the residue You can also describe and enter two additional positive adjustments to the estate s residue GEM706 displays the value of the estate s residue at the bottom of the window This amount is used in other portions of the program Click WESIli or type F9 to return to the Main Menu 4 04 Decedent Information Select option 1 Decedent Information 26 Chapter 4 General Data Entry 4 05 Beneficiaries I Enter the following decedent information Fir tnama and middle initial F List nane Smith Sonal surc
17. 1 e000 ihesi quater on Section 3 72000000 Mayl Sith puters l Sire 14 Miscellaneous Poepors E5 m3 9s 16 Form 708 Anm 16 Section 20 che E 12 01 2013 55 25 00 17 Section 666 Elation P beet due de EJUS and 12 19208000 18 5 yms 5155 qme ar pd 12 01 Maturity date DEO rom 13 GE Gateway Maturity diste OR sidrai 20 GEMTIS Gabinwery rin 2 Ste Rietums 32526 00 Zhou Toke 15344 74 b 4 TIE PA thoy hake 1 5711 1H EIC 715 LTI Huy dye 11S P5000 CI anm Beneficiaries appear in the table on page 2 Form 706 in the order in which you enter them There are two ways to change a beneficiary s location in the table Left click on Susan s name and while continuing to depress the mouse button drag her to the University of Oklahoma Foundation GEMAcct inserts the beneficiary before the location where you dropped the name Left click on Susan s name and then click the Up Arrow in the right portion of the window to move Susan back to her original location Click ES to return to the Main Menu 4 06 Preparer and Estate Representative Select option 3 on the Main Menu to enter information with respect to the preparer and the person authorized to represent the estate before the Internal Revenue Service 30 Chapter 4 General Data Entry 4 07 Fiduciaries 4 e 5 Elcon G General and Tax Related Ininematon 7 Gift Te Rietume B Section 20324 Election 4 Sector 6166 Elector VO ertad hantal
18. 12 Residue Information P mi 13 Siale Death Tax informato ic e ire Punt Schedule J Pat amp Fursa Expenses 14 Miscellaneous Fia Polmlin Fett Administration Expenses TPRSCUO Commen 5 roie Fs Alice hees Actual bees 17 Section 6766 Election Schede K Part 1 Debis of the icederi 1 amp 3 iS Schedule K Past 2 Moilgaces ard Lens Udiliaz ui Schedule L Pan 1 Net Lowes Daring oderat ation 19 s Schedule L Patt 2 Expenses on Property Hot Subgect to Claes Golowsy Schedule M Bequests e amp t l Surviving Spoute zn GE GM Preliminary infoemation 21 State Returns OTIP Property All leer Property Schedule Chokable Pali and Sordi Gite aral Equit Fieke ridic Schedule P Crai Hos Fionesgn Dasih T ases Schedule Credit bor Tanx on Prior T rane c Schedule Generation Skagen Transler Tac Direct kia From a Trust Prekrnanang informan ee M n STF yannin l 83 06 Edit Enter Macros Utilities The macro feature is a word processing function that allows you to create and save text you may wish to use repeatedly Macros give your returns a more consistent appearance Select Enter Edit Macros and GEM706 displays the following Dena Erny 1 Decadent info 2 Benehciames 3 Pre panes and E stal 4 Exacuiors HAE Linded States Tanay Bored Exchange Liri value 5 Elections The doncc tranclemed canh to the Trait subject ho a noncumulative power to withdrew held by 6 Ge
19. 13 You can also enter up to three additional preresiduary gifts at the bottom of the window Opposite each gift you should indicate whether the gift should be used in computing the estate s or trust s residue If you fail to indicate whether the preresiduary gifts relate to the estate or trust GEM706 does not reduce either residue by the amount of the gift The last question requests whether you desire to include this beneficiary in the table on page 2 Form 706 Make sure that the Yes radio button is checked and then click on the Residual Gifts and Apportionment tab e Federal Estate Tax Returns 2011 Estate of John P Smith F ge Utilties Preferences Help Form 705 Page 1 Dena Erny Fem 705 Page 2 1 Decadent information a 2 Benehcianes Beneficiary Indore hal of Sechon 16 128 000 00 Bopha Estote General Information Rasidual Gits and Apportionment Buster on Section 31 720 000 00 5 Elactong Mame Susan T Smith 6 Genaral and Tex Fell Gecwfciary s percent of residue before payment of transfer taxes 107 302 00 7 Cit Tex Rehan Fuse int s trust 4 250 00 B Sechon 20324 Elects l p 105 000 00 9 Section BIGE Electoq Percent of Laxes payable by beneficiary a5 On 10 Interreteted Marital D Fed estate Fed GST ar CNC wi FORO Ord 11 Imerrelated Chewitebil en A 12 Residue Information Percent of inheritance tax payable by beneficiary aao 13 Stet Death Tex Infor x 1 27 55 Drm 54 538 28 E 15 251 27 14
20. 20 GEM703 Getewey 16 50 000 wisconsin Heath Faciliy Interest cate 5 25 Intevest due date 03 01 and 09 01 Maturiy date 09 01 2013 21 State Retuens iiaei on above bord accrued as of decedens daah Schedule C Mongages Notes and Cash 1 Feet National Rark NOW heckro accout Acct rambet 161 1332 E000 Exchange Nasdaa BOO Exchange NYSE BE Interest due date 06 01 and 12 01 Manaty date 6 2 Caria State Bark money maket account fol nombre 55724898 T inimest on above dee conim at of decmderi s death 3 fFubelhy Brokerage Accoud Acct number 54086584 4 100 000 cetthcate ol deposit mih Fest Nobonal Bork Cof number 273928386 Inkesest tate 4 10 Mohaty dale 12 3 10 000 CD 1 Intewest on above deem accrued as ol decederi s death 53 z PE OD cede dos d a WEM PII P M iN Ao 2 QU M ot mi iw s F7 Add ltem F5 Delete Item F8 Add Appendage To move an item you must click the corresponding radio button at the bottom of the dialogue box At the top you can elect to have the item appear before or after the target item You can also elect to treat the item as an 58 Chapter 5 Schedules 5 16 Moving and Copying Items appendage to the target item Check Move and indicate that you want the item to appear before item 1 and click OK The 20 000 Iowa Finance Authority bond and its appendage has become the first item on Schedule B Since all schedules do not ask for the same information with respect to each item GEM706 sometim
21. 21 State Rotu Eoas mwe 2 4 s 32 586 00 ufer to S AIRA Elnctions 5 Check to tarifar to Schedule M pe 2633592 1567 Check t community property 15344 74 110 000 00 21535 70 000 00 97 33 You can page through the items on Schedule A by using the F3 and F4 keys Click OK or type F9 to return to the Main Menu 5 10 Schedule Print Previews To see how schedule A now appears double click on Schedule A Real Estate on the schedule tree GEM706 displays the following 48 Chapter 5 Schedules 5 10 Schedule Print Previews SE d a HE Page jot 4 V m B Ze 5 s Worm TOG Paw H 2009 SCHEDULE A Real Estate Far jointly owned property that must be descosed on Schecule E see the instructione on tha reverse gde of Schedule E Real estate that is part ol a sole proprietorship should be shown on Schedule F Real esate ihai is included in the gross estate under section 2035 2036 2037 or 2038 shogid be shown on Schedule G Real estate that is included in the gross estate uncer section 2041 should be shown on Schedule H you dec sachon ANGA valuation you mus complete Schedule A and Schedule A 1 p Atomnale tg wem unnm 320 acre farm located in Muscatine County lowa more 10 01 2011 1 275 000 00 particularly described as follows The south half of Section 16 Range 2 West of the 5th Principal Meridian in Muscatine County lowa 160 acre farm located in Cedar County lowa more 10 01 2011 720
22. B Secti n Z XZAE 3 Secton 1T55 E WO anion War 11 Intarmalatec Cha 12 Residue kioma 13 State Death T ax Firini 14 Migcallanaaug 15 Porn 706 16 Sesion 2033 AE 17 Section 6166 EN 18 Supporta For Llities 19 6 Gotew eu Gete 21 State Pontum 15 000 00 2 200 C TWO OL OI Note that the data input closely resembles that for Schedule A except that there are fewer questions and no alternate valuation column Click Cancel to return to the Main Menu without entering item information 5 15 Schedule M You must include on Schedule M all property qualifying for the marital deduction Use the slide bar to the right of the schedule tree or type M to advance to Schedule M Data Entry 1 Decedent Information 2 Benehcones 3 Prepare and Estate Representative 4 Executors 5 Elections 6 General and Tex Related Information 7 Gitt Tax Returns 8 Section 2032A Election 9 Section 6166 Election 10 interrelated Marttal j 11 inerelsted Chamabie 12 Residue Informebon 13 State Daath Tan Infomao Print 14 Miscellaneous 15 Form 706 16 Secton 2 IN T re S 3 Di Fond F150 Teck 4 2005 O M sibus mo Scheckde G Teanelees Dunn Decmdeni s Lie Pi ckererety Irboemohor Schedule H Powers ol Appontmert Shodi l Arrastes Pickrrreny r cemoahon Schedule J Part A Funeral Expenses Schedule J Part B Admiriseshon pertes wecutro comenson Annmesy ee Accountant lees 4 Payment to S
23. C Mo Hananal person Print A 14 Miscellaneous 15 Fem 706 16 Section 2 we 1A kriget due date OGD and 12 17 Section 6166 Election 18 5 and 120 Matunty date 06 0 EI Maturity date CELA 213 E 2 Gens Siete Bark mere marked sori Fuel nombes SATE T Interest on Abiron bern screed ac of esc et 3 Feli Esckesage Aiai Acl ramii 54 DESEE 4 WM DOO coiii of degit wth Feel Haoni tank ssl raanibes OPS Inienesl sabe amp TOE Malunby dale 12 511 T Inberest ce abere ibem accnaed az oit decedens dear mo 8 FEO onii of deponi vate Cental Date Bank Cert number 5754 3744 Imie ate Lia Mount dale TLA O Inienesi on above iiem accrued ar oi decedent s death FF Aii nem The first question asks whether this 1s the executor that that the IRS should contact Click the Yes radio button You can only select one executor Assume that the executor is a beneficiary and click I to drop down the selection list 32 Chapter 4 General Data Entry 4 08 Elections File Utilities Preferences Help Ime E CEN SEE am 7 am Jb Page T Data Entry Foam 705 Page 2 1 D acedeni Indormaton Form 706 Page 3 2 Beneficimrias i Schedule A Asal Estate FP d Estate nalna 1 AA aem bum oead m Musesiine Couniy kw mont pateubriy descsibes as fellewer Thy saah hal ol Sechon 16 1 28 00 DD 1 pie eM 2 180 acre lum located in Cedar County lows more particularly deacibed ax folows The rorthesst quarter on Section 3 5 Elackons Schedule A
24. Data Entry 4 09 General and Tax Related Information Federal Estate Tax Returns 2011 Estate of John P Sm f e Utilities Preferences Help Data Entry 1 Decedent Information MM EATER Fun General information Tax Related information State Tax Deduction Sechon 16 1 275 00000 s S 720 000 00 a state G Nd 6 Does gross estate contain any 2044 QTIP property hen rmn Elections G i 2 amp General and Tex Related No umm FTE SE sonde 7 Git Tax Rethans No 8b Did decedent own insurance on another s life NOT included in gross estate 8 Section 2032A Election No 108 Did decedent own an interest in partnership unincorporated business LLC or 9 Section 6166 Election inactive ox closely held corporation No 11 Did decedent make any transfers described in 2035 2038 No 12a Did decedent create any trast in existence at death A No 120 Did decedent have any power beneficial interest of trusteeship in a trust which was in existence at death and which decedent did NOT create 14 Miscellaneous Rep 15 Form 706 amp No 9c Was decedent receiving income from trust created after 10 22 1986 by parent or 16 Secton 2 grandparent 66 17 Section 12e Did decedent transfer oc sell an interest in a partnership LLC or closely held corporation to a trust described in question 12a or b date 06 EIN of transferred sold nem Lt 13 Did decedent ever possess exercise or release a general power of appointment 03 01 201
25. Form 706 Ge Federal Estate Tax Retuma 2011 Estate of John P Smith F e Form 706 Page 1 Dota Entry Form 706 Page 2 1 Decedent Information Fom 706 Page 3 2 Beneficiaries Schedule A Real Estate 3 Preporer ond Estote Representative 1 320 cre lam located in Muscatine County lowa more Iparticulady described as follows The south hall of Section 18 A 1 275 000 00 4 Exocutors 2 16D acre lam located m Cei County loma more parieuwty described s lolowr The northeast quater on Sechon 31 720 000 OD 3 400 acre lam located m Muscahne County lowa more pareuldy descnibed as follows The west haf and the nestheves 3 900 DOO 00 5 lections Schedule A1 Sechon 22A Vakashon 6 General and Tax Related Informaton Schedule B Slacks and Bonds Gat Tex Ritums 1 20 000 lowes France Authorty Communis Foehabil shion Providers interes cle SEX Intewest due date OB and 120 19288 00 8 Section 2032A Election yam 57 5 3 Section 6166 Election 107 502 00 10 Inberreleted Mental Deduction Y 4 25000 11 Interrelated Charitable Dediptign Beneficianes 15 p 12 Residue Information WS Tax Calculation Summary 7 000 00 13 Tax Informit ms i 9 Sole Deoh Tex uS l Residue Report poenror 20 600 00 77 Pret A Taxes payacie trom URN 14 Miscellaneous R ports T temores Trost restos 15 Fom 06 4 54 538 28 16 Section 20324 Ele Aion K State Death Tax Calculation 15325127 17 Seciont S amp Plaglon Worksheet TG
26. Miscellaneous Pa ER B13 75 15 Form 2085 ar s 08 16 Section 203 2 Eee ula 60 17 Section 6966 Bletion dae EAT aad 1 TSO 18 Su hri 57 55 Mgstunty date 06 01 A3 725 00 14 dee 0 71 2013 50075 or 31 40 X SS OC zb Emu 15 54 15344 8 Matanty dae DAFI TO DOG GU F7 Add Gene FO OK 53s Hun dans 11 20 06 P DOO OO nw Pari Tra T CE orbs rere d E reos qr t i The gifts that Susan received entered under the General Information tab will be increased by any residual gifts she receives and will be reduced by any death taxes which that she pays both of which are entered under the Residual Gifts and Apportionment tab 29 Chapter 4 General Data Entry 4 06 Preparer and Estate Representative The first question requests that portion of the residue of the estate and intervivos trust which Susan received You must advance to option 12 on the Main Menu to enter sufficient information to compute these amounts See 4 03 You should also print the residue report to verify that the amount is computed properly See 10 02 For purposes of completing the beneficiary table on page 2 Form 706 GEM706 combines the following amounts Life insurance entered on Schedule D and shown under the General Information tab Joint tenancy property entered on Schedule E Part 2 and shown under the General Information tab Annuities entered on Schedule I and shown under the General Information tab Preresiduary gifts entered u
27. O as a percent of the residue of the estate or an intervivos trust See 5 15 If the spouse or charity received a portion of the residue the Instructions for Form 706 require you to attach a computation of the residue When printing Form 706 GEM706 prints a summary of the residue calculation after Schedules M and O You may elect to attach this summary to Form 706 to satisfy the reporting requirement Select option 12 to enter the information required to compute the residue Ge Federal Estate Tax Returns 2011 Estate of John P Smith Fe Unies Preferences tele 1 Be cedant Indormoaton 2 Baneficimrias 3 Preparer end E siete Pep 4 Execulons 5 Elections b Giansenal and Tax Ralsiec 7 Gift Tax Retuma B8 Section 20324 Election 3 Sechon 6166 Electron 10 bveretated Mental Dedug 11 betemodated Chantable D 12 Residue Information 13 State Death Tax Inforgli Print 14 Miscellaneous Fhe 15 Form 708 16 Section 2l 17 Section 6366 Election 3 21 State Ritums From Ub Page 1 fom LUE Page 2 fom UB Page 3 Residue Informatie Estate Residue intarvivos Trust Residue Gross estate ime 1 Form TO65 Lass Assets listed on Schedule G Other assets passing outside probate Deducbons on Schedules J K and L Life insurance afecciated with banetiiciary on Schedule D Joint interests associated with beneficiary on Schedule E Annuities associated with bene amp ciary on Schedule Preresaduary gifts identified in
28. SEX Interest due date 05 01 and 12 01 Maturity date 12 01 2012 55 255 00 17 Section 6366 Election 2 34 20 000 lowe Franoe Authority Community Fichabiitaon Providers Inierest abe LEY inbe due date DGANI and 12 19 2800 18 5 e 1 inkera on above bond accrued es ol decedent s death 555 Lilies V z 15 50 00 Carte Lake 1e Urban ences Interest rate SOIS Intend doe date DEVI acd 12 01 Maturity date DEL 45 72500 AO Interest on boss bond accnaed ad ol decedent death 146 73 13 GEI Gateway We 5000 wiosen Hesh Facit Inderedt iabe Scie febres due date DDI ded VON Hunii dite DEL 21 Sava 20 GEMPTIS Ganwe 1 dnterast ons above bond accrued at ol decedens death 31146 21 State Rotuma Schedule C Momgages Notes and Cath V Fei Harma ark AOA cieeckang account Avo ruber 161 1 3 7 32 ooh Un Caria Shale Ecke iron ake tan ced rna 5h 77 4 EE Zhou 1 pneri or albero bern accrue act cdi mcm nd cs Tht Fodbebly Rechte fuxccuni Acl ruamlser Sl Od LE E ILO cti of t wall Fus Haa Bork Loe mune SSS ial sale 4 TIPS bady da 1 771 TO 1 impa cri bae iem accnaed aa oi decedens dea 7158 PHUN perhhieaee ol deponi vari Lena Siete Bank Len number 50243 X145 mime ite LT Mantle T1 XV SOU Interest on above iiem accrued a4 of decedens deaths 3 ET When a or appears to the left of a schedule or item you can click on the symbol to open or collapse the selection Click El to the left of Schedule B 43 Chapter 5 Schedules 5
29. Tax Return Bisnenedtel rdum Estate a erra epe eS n mire ee ee ee intemal Revenue Service To be filed for decedents dying after December 31 2008 and before January 1 2010 18 Decedecta frat name and middie initial amd maiden name d any Decedent s lastname 19 4 1 19 nity State and ZIP code country el legal res dence doemicelat tme al deat Muscatine County lowa 73072 Ga Name of executor see page S of thesnatructona 2032FarewayDrive Muscatine IA 52761 in min xecutor s socia ae cunty number see pages of theieatruction amp 5789 Q Naneandiecatono court where will was probated or estate administered Part 1 Decedent and Executor W decedent died teatwte cheek here Be andattach a certified copy ofthe will B I you exteri the time WI 10 H Schedule A 1 is attached check hare W 3 Tota gross aaae less exclusion hom Pat 5 Racapituation page 3 item 12 Ar Mes a 2 Tentative total allowable deductions from Part 5 Recapaulalion page 20535 2 3a Tentative tacable estate belore state death tax deduction subtract li hm d 22s 3a b State deathtaxdeducton 2 o s soo ee ee ee BA e 35 Taxable estate subtract ine 3b from line 3a cM cup EU 4 Adjusted taxable gilts total taxable gifts within the meaning of section 2503 made by the decedent alter Dec 21 1978 other than gifts that are includible in decedent s gross estate sect 2001 b 5 Addlmes3candd
30. Taxpayer 1D 234 565 7830 O DO 12 Residue Information Spouse C we Ho Relationship Daughier eae 13 Siale Dech Tox li For purposes of computing the amount received by surviving spouse amp t 827 55 Print and shown on line de paga 2 Fern 7065 enter amount received 54 535 20 14 Miscellaneous Rapa other than that shown on Schedule M oe 15 Foe 708 E omn 16 Secion2032 amp EMicu d Description amount and source of preresiduary gifts ac 17 Section 6966 Election Descipten date AN eed 2 13258 0 18 Su s Life insurance on Schedule D 5755 Jant tenancy property on Schedule E Fart 2 Mabaty date O60 9 4372500 Annuities on Schedule 146 1d M Estate Trust nodi Este Trust xt BE On BIS Yes C Mo List beneficiary in table on page 2 Fonm TOG 15 67 12 244 4 Matanty dae sl 100 000 00 25 5 Suny dae 11 30 06 T DOLO The questions at the bottom of the window and under the Residual Gifts and Apportionment tab permit you to describe the amount that Susan received for purposes of completing the beneficiary table on page 2 Form 706 Your answers may also affect the value of the estate s and trust s residues GEM706 displays the amount of life insurance that you indicated passed to the beneficiary on Schedule D the amount of annuities which you indicated passed to Susan on Schedule I and the amount of joint interests listed on Schedule E Part 2 for which Susan was a surviving joint tenant See 5 12 5
31. a tax calculation GEM706 detects possible inconsistencies in the return and other possible problems GEM706 classifies these issues as either errors or warnings If GEM706 detects an error it prints an Error watermark across the form Unlike errors warnings are not fatal to the tax calculation However you should always print and evaluate the warnings You should also print a copy of the checklist The checklist contains a list of documents forms and other information which you should attach to Form 706 GEM706 compiles the checklist base on the information which you have entered However you should only use the checklist as a guide You should always carefully review the requirements for your particular estate to determine the necessary attachments to Form 706 GEM706 displays in bold print those schedules on which you have entered items Check Page I to print the first page of Form 706 You can elect to print the date and time at the bottom of each page When you are printing multiple drafts this feature permits you to distinguish between them In addition you can enter text that will appear as a watermark diagonally across each page Check the Date Stamp and Time Stamp boxes and enter Do Not File as a watermark and then click Print or type F4 61 tay uas Chapter 6 Printing 10 03 Form 706 amd x CIEFFIELEEXIETT At 9 AmB 2e 15398 B fom 706 United States Estate and Generation Skipping Rev September 2009 Transfer
32. and the number of principal payments GEM706 then determines the dates of the interest payments that come due between the original due date of the federal estate tax return and the date of the first installment payment of principal You must also indicate whether the estate intends to defer the maximum amount of estate tax The maximum amount of federal estate tax which the estate can defer under IRC 6166 is an amount which bears the same ratio to the federal estate tax reduced by any credits as the closely held business amount bears to the adjusted gross estate If you indicate that the estate will not elect to defer the maximum amount of estate tax GEM706 requests the actual amount of estate tax that the estate will defer Business Interests Tab Click the Business Interest tab Ge Federal state Tax Returns QUII Estate of John P Sea Fae Utilities Preferences Help Data Entry 1 Decedent Information 2 Benehiciones 3 Prepare and Estate F 4 Executors 5 Elections 6 General and Tax Rela 7 Git Tax Returns 8 Section 2032A Election 9 Section 6166 Election 10 interrelated Marttal Ded 11 interreieted Chartable E 12 Residue Intormabon 13 State Death Tax Into Print 180 5 Unlities 14 Miscellaneous Repo 15 Form 706 16 Secton 203 on 17 wir A Amount of mortgages secunng decedent s interest in real property Fair market value of passive assets in Business interest 1 275 000 00 720 000 0D
33. io Schedule E Part 1 ScheddeQ Cette Pubis sone Saab Gite aral Elus Pieka rides Schedule P Cosi fea Fanion Daath Tasas Schedule Credit ba Tx on Prior Transfers c Schedule Fil Kanani Skipisg Transin Tae Creech Skice From a Trust Prek hap indocti Chapter 4 General Data Entry 84 01 Introduction Click El to the right of the GEMAcct Data File box and GEM706 displays the most recent accounting gt Feder Returns 011k Es File Unites Utilities Preferences Help Dena Erry 1 Decadent infommaton 2 Benehciames files that you have been working on Mabe al Jahn P Seith 3 Pre pant and E state Pongaesentetiun 4 Exeeutors 5 Elactong amp General and Tax Related Infarmata 7 Cit Tex Rete 8 Souchon 20924 Elecdion 3 Sacton G166 Election 10 Interretated Martel Ded 11 Interea Chesiteblo Cie 12 Residue Indomnation d Tax informato are Miscellmnaaus Fia 15 Form 708 s 16 Section 20 A Ps 17 Section G66 18 Supp rit Utilities Galrway 20 GE Contes 21 Siete Retums Form 706 Page 1 Form ME Page 2 Fem E Page 3 Schuh des A Fl E itae Schedule A T Sedan JRA Valse Schedule E Stocks and Porade Schedule C Mortgages Hones and Cath Open Eira Fio Files E GEMS VS ample beri asp FAR CNGEMENS ampleFlerkS ample FAR CGMS V ample lea oho mith FAR GAGES ampio lei dabat 20 FAR CAGEMS GEMAccH Training anual FAR AD Doci an Satements and Pookie uihna
34. l Muros Persit aul les hor cliche ger 40 Pel Bl lo lew ae red E AE UE i Feii FL Fal Z Mortgages arid Lenis Schedule L Part 1 Het Losses During deti stor Sede L Part Z Lipencet en Property Nor bubac to Urea TTESTELVTTI QTIP Propexty A Othe Proreriy 3 Schedule D liem 1 Sphedule U Lhantsble Public and amor ite and Equals Sachendule F Diib Ben Fora Death irons Schere C Last ho Tae a Fri Tribe Shedd Fe Generston Shoppe Tiaia Tac Dunst Shape Peon a T narit ihih A Pat 1 G5T Ciampea Haconcikshon Schedule A Fat z Direct Shope where Property Inteeeghr Bear GST Tax Seeds E Pas 2 Direct Ships where Property Imee Do Hos Beas GET Toa Note that the life insurance policy appears as the first item on Schedule M Part 2 Double click on that item to display it 53 Chapter 5 Schedules 5 13 Joint Interests Schedule E Part 2 Ya Seheedule G Tranafers Dunn Decedent s Lite Data Entry 1 Dacadant latam Shedule M Part E 2 Benetcones 3 Prispener and Es 4 Executors 5 Elections SCHEDULE M All Other Property amp General and Ta T Gift Tex Futura Description of property interests passing t surmang spouse 8 Sucton 166 Ele 10 Interretated Ma x 11 interrelated Che a 12 Fesidue Income Schedule D Itam 1 T eure bank 13 State Death Tax TUNES estate residue Frnt 14 Miscellanenus m 15 Farm 706 j 16 Sechan Z 32ATE Parcent of 17 Section Gleb milentis trust 18 Suppor
35. meea ce above item accrued as of decedens death an o The first question asks whether a gift tax return was filed for the period For purposes of completing Worksheet TG you must enter all taxable gifts made by the decedent In some instances a return may not have been filed If a return was filed GEM706 checks the Yes column on line 7a page 2 Form 706 and includes the period on line 7b If a return was filed you must enter the Internal Revenue Service office If a return was not filed this question is grayed out The four questions at the bottom of the window relate to situations when the gifts are brought back into the gross estate or where a gift qualifies for special treatment for certain split gifts For more information see 3 05 of the GEM706 manual Click to return to the Gift Tax Return selection screen and click again to return to the Main Menu If you used GEM709 to prepare the decedent s gift tax returns you can transfer the information relating to past gifts listed on Schedule B of the decedent s last gift tax return and the taxable gifts reported on the last gift tax return GEM706 also creates additional items on Schedule G representing gifts made to a qualified tuition program QTP that have not been fully reported on the decedent s gift tax returns Select option 20 on the Main Menu and GEM706 displays the following warning 38 Chapter 4 General Data Entry 4 11 Section 6166 Election Fe Unimes Preferences Help
36. number 754 3044 Interit rate I Maturity dae T3006 75000 00 4 nbensct ran abere bam arenar ar of checkers reah 7 x1 i 4 02 State Death Tax Information As discussed in 3 06 you can enter sufficient information to permit GEM706 to compute the state death taxes This information is utilized in connection with the calculation of the deduction for state death taxes shown on line 3b page 1 Form 706 see 3 03 of the GEM706 manual and the completion of the beneficiary table on page 2 Form 706 see 2 03 2 05 of the GEM706 manual It is also necessary to enter information with respect to the state death taxes to perform interrelated calculations involving marital and charitable deductions see Chapter 5 of the GEM706 manual Before exploring other options on the Main Menu select option 13 by clicking on that option or by typing 13 and complete the screen as follows 24 Ge Federal Estate Tax Returns 2011 Estate of John P Seith File tibie Preferences Help Dena Erry 1 Decedenit Infapmanig 2 Benehcames Sune Death Tax ints Primany 2econdary Rates State Tax Intormatean 3 Pre pant and 4 Execularg 5 Elactong 6 General and 7 Gift Tere Raisi 8 Schon 20324 3 Saceon 6166 10 Inerrelated M 11 pnan G 12 Residus Inton 13 State Death Friii 14 Miscellanea 15 Form 708 16 Section 20328 17 Section 6166 18 amp Sunnor ng Ft Uses p b IC 20 GE Gm 21 State Returns Amount of slale deat
37. on Help on the menu bar at the top of the window 2 Youcan call our support line at 1 888 436 7706 ext 2 Support hours are from 8 30 to 4 30 Central time 3 You can e mail your questions or comments to Support GillettPublishing com For questions concerning your account purchases renewals or invoices contact Sales GillettPublishing com or call 1 888 436 7706 ext 1 Chapter 2 Creating and Accessing Data Files 2 01 Introduction Double click the GEMS icon on your desktop and GEMS displays the introductory Administrator screen C GEMS GillettPublishing com Glam Eran Managem ent Authorization Updates About W706 Kccr Was P EXIT Wakisi iai Pubi LLE You Prit keto GEMS Bes uat ni he oig olheer Hoenan winodland Pak This window displays your firm information in the left pane and is your gateway to the three main modules GEM706 GEMAcct and GEM709 There are three additional tabs at the top l Click About to find your program versions installed your customer ID number your most recent authorization codes and sales and support contact information 2 Click Update to set your automatic update intervals and to instantly obtain the most recent GEMS updates 3 Click Authorization to enter new authorization codes 2 02 Creating Data Files To create a new data file click GEM706 on the Administrator window Chapter 2 Creating and Accessing Data Files 2 04 Data File Names Gillett
38. on Part 1 Schedule M By including qualified terminable interest property on Part 1 Schedule M you are making a QTIP election with respect to that property You must list all other items qualifying for the marital deduction on Part 2 Regardless of whether you are entering an item on Part 1 or 2 the item entry window for Schedule M appears the same Click Schedule M Part 1 and click Add Item F8 Add Appendage SCHEDULE M QTIP Property Item number Percent of estate residue Percent of intervivos trust F10 Macro F11 WwP Check if optimum marital deduction Cancel Note that the header informs you that you are adding an item with respect to which you are making a QTIP election to Part 1 Schedule M In addition to assigning items to Schedule M see 5 12 you can enter the item description as you would on any other schedule However there are three different ways to compute its value First of all you can enter the fair market value of the asset that passes to the surviving spouse and that qualifies for the marital deduction This amount should reflect the full value of the marital bequest even though taxes are payable out of the bequest If you later change the value of the asset giving rise to the marital deduction you must manually make appropriate changes on Schedule M If you enter an amount you cannot access the percent data fields in the amount column and you 57 Chapter 5 Schedules 5 16 Moving an
39. ote 20 GEMM Gani 21 State Ritums 146 23 Sooo J148 12 Resid l f E Page Break z Ee umo idua In pM M 13 Stat De ath Ti The decedent gamed the following as tenants m EE r commen with his bralher Max BL Srath F Bl BT 55 Print ALL NN t 5326 400 acre farm located in Muscatine County lowa mora gt tee 14 Miscellaneous particularly described as follows Pio i 15 Form 706 Loud 16 Section 20320898 The west half and the northwest quarter of tha northeast pennis 17 Section GESE quater of Section 27 Range 7 Wiest of the Sth ting c ps Principal Mondian in Muscatine County low Lal ETHS Elli hona 1567 15344 7 4 Ton nn nn 21535 E ung wr FA Dielsin Iber When you are done click Tab to advance back to the item description and then click Tab again to advance to the date of death value field 5 06 Date of Death and Alternate Values The numeric data fields in right portion of the window permit you to enter the item s fair market value at the date of death and at the alternate valuation date The alternate value and alternate valuation date fields are active only if you made the corresponding election in option 5 on the Main Menu See 4 08 When you enter an item s date of death value GEM706 defaults the alternate value to the same amount Enter 4 000 000 as the item s value at the date of death and type Tab or Enter to advance to the alternate valuation date data field General
40. report showing the threshold report Click to return to the Main Menu 64
41. the beneficiary table on page 2 Form 706 and when entering items on Schedules M and O See 82 05 and 5 15 The State Death Tax Calculation report details the manner in which GEM706 computed the state death taxes You can refer to the state death taxes when completing the beneficiary table on page 2 Form 706 see 84 05 and when determining how GEM706 should complete line 3b page 1 Form 706 see 4 09 Worksheet TG is a reconciliation of the taxable gifts that the decedent made It details the manner in which GEM706 computed the adjusted taxable gifts shown on line 4 page 1 Form 706 and the gift taxes payable on gifts made after 1976 shown on line 7 page 1 Form 706 The worksheet follows the format in the Instructions for Form 706 Finally the Schedule Q Worksheet contains the completed worksheet found in the Instructions for Form 706 which details how GEM706 computed the credit for prior transfers shown on Schedule Q Click ES to return to the Main Menu 60 Chapter 6 Printing 10 03 Form 706 10 03 Form 706 To print Form 706 and its supporting schedules select option 15 on the Main Menu Ge Federal Estate Tax Returns 2011 Estate of John P Smith F e Utilities Preferences Help Form 706 Page 1 Doto Entry Form 706 Page 2 1 Decedent Information Form 706 Page 3 3 Preporer ond Estote Representative 1 320 acre lam located in Muscatine Courty lows more Iparticulwdy described as follows The south hall of Section 18 R 1 2
42. to those beneficiaries and reduces the amount available for distribution to the residuary beneficiaries If you fail to identify the cotenants GEM706 does not reduce the residue by the amount of the joint interest Click Cancel to return to the Main Menu 5 14 Schedule J Schedule J has two parts Part A relates to funeral expenses and Part B relates to administration expenses Form 706 reserves the first three items on Part B for executor attorney and accountant fees GEM706 has already included these items on the schedule tree Select item 1 Executor Commissions on Part B Schedule J Ge Federal Estate Tax Returns 2011 Estate off John P Smith Fike Utilities Preferences Help 2 5 a0 certicate of depost wath Central Moe Dank Cet number 5704 2044 merete 170 Histunty dae 11 22 06 70000 00 a Dieta Eniry o Intereston sbowe bem accrued as of deoedenir death yu l Descedent Infamaman Schedule D Insurance on the Decedent s Life Beneficiaries 1 The decedent caned a 100 000 Me insuremce pokey on Fit cun le eth huua of Mee Teb policy XB MIETI ee TOLL vd Estate ee Tehei E Pat 1 Qs Jar Inbena 3 Preparer end E Fepasa Erchedis EP iat Ar Ces Jerk ieg zip Schede Mscelwenus Property amp General and Tex Fieleted Information 1 Hhcdhuwow housebetd iunii 15 000 O0 7 Citt Tex Fottur 2 Fam epaper 120 000 00 B Section 20324 Election 3 UM Pod Flo Fuck 12 UU QUI 3 Section 6165 lactian 4 205 Chirii Malibu 10 000 Qi T1 Merritt
43. window permit you to specifically identify the information you wish to transfer to GEM706 Click on the Assets tab 23 Chapter 4 General Data Entry 4 02 State Death Tax Information Go Federal Estate Tax Returns 2011 Estate of John P Seth File Utilities Preferences Help Dena Erny 1 Decadent Info 2 Benehciames 3 Preparer and Estall Beneficiaries Personal Representatives Assets Liabiities Cash Disbursements 4 Executor 5 Eloctorns e Ganaa and Texa pF 110 001 Firat National Bank NOW checking account Ae Pinter i 130 001 Charles Schwab Brokerage Account 338 335 92 3 Section GIBE Elec 130 002 Fidelity Brokerage Account Hi 15 34 74 10 Interrelatedi Marites 150 001 Bellsouth Corp 11 inaona Charita 150 002 Ford Motor Company 12 Residue In amp ormatic 150 004 HNI Corporation 13 Stole Death Tax kr 150 005 Quad City Bank and Trust Pini 150 006 SEC Communications Inc 14 Miscellanenus Fi 150 009 EM 15 Form 706 i 150 010 Mecrasof Com 16 Section 2032 EMI 165 001 Franklin Income Fund 17 Section 5165 Elect 165 002 Vanguard SAP 500 index Fund 18 Supportiqg Forms 165 003 Transamenca Index Fund B 15325127 Utliias 165 004 Fidelity Contra Fund 65 813 75 19 Geli oa 165 005 Fidelity Magellan Fund 203 682 06 20 GEM U3 GMawe 200 001 550 000 US Treasury 55 265 00 21 Siete Returns 210 001 520 000 lowa Finance Authority 13 286 00 210 002 amp 50 000 Carer Lake kva Urban Renewal F 48 725 00 210 0
44. 0 134 AL DU 51 uz 55 54 538 28 153 251 27 ES 813 75 ALS Be Ut UE DE 265 DI iubes TN ird 027 T3 het LX 2 d Mabany dae Un 43 727500 1 d p dae 03 01 2013 50 075 00 3111 40 X 5H DX oh us 1552 15 44 4 Babay dae Tol TOO DOCLGU 2535 abun dans 11 30 06 700000 qr 7 i If you identify a beneficiary as the surviving spouse GEM706 only displays the General Information tab at the top of the window You enter residual gifts to the spouse that qualifying for the marital deduction on Schedule M See 5 15 In addition you must select option 10 on the Main Menu to enter information relating to the taxes payable from transfer qualifying for the marital deduction You must report the amount that the spouse received on line 4c page 2 Form 706 GEM706 automatically computes this amount by using the net marital deduction shown on line 6 Schedule M However the spouse may have received assets which do not qualify for the marital deduction In addition the full amount of any QTIP property passing to the surviving spouse is also included on line 6 Schedule M and you may prefer to reflect on line 4c page 2 only the actuarial value of the spouse s life estate In completing line 4c GEM706 adds the amount you enter in response to the question appearing after the Spouse radio button to the marital deduction shown on Schedule M To reduce the marital deduction shown on Schedule M enter a negative number At the bottom of the scre
45. 000 00 particularly described as follows The northeast quarter on Section 31 Range 2 West of the 5th Principal Meridian in Cedar County lowa The decedent owned the following as tenants in common with his brother Max R Smith 400 acre farm located in Muscatine County lowa more Various 4 000 000 00 particularly described as follows The west half and the northwest quarter of the northeast quarter of Section 22 Range 2 West of the 5th Principal Meridian in Muscatine County lowa Look carefully at the item that you just entered The two lines of text preceding the item number is the header while the item number is associated with the first line of the item description Click or type F9 to return to the Main Menu Item 2 on Schedule C has an appendage representing interest accrued on the money market account as of the date of death Double click item 2 and GEM706 displays the following Fie Liites Preferences sche Diete Entry L Decada kiama F Pmem o 8 88 mde z Banehrinnas m Arppen SCHEDULE C Mortgages Notes and Cash pete 5 Elactons D ME prop disclosed on Schedule E_ see the instructions far Schedule E 3 900 000 00 amp Genorel and Ten Lir T Gif Tax Ratan 8 Sacton 20324 E 3 Sinctson 6166 Eli 10 Interrelated Ma 11 interrelated Cha Central Stabe Bank money markel account Fens 5872 0988 12 Peesidue n jme Ace mumii 13 Soie Death Tex Enni 14 Hiscell amp naa 15 Farm 706 15 Se
46. 02 Schedule A oi Federal Estate Tax Returns 2011 E Fie Unites Preferences Help Form SUR Page 1 t Entry tom fb Page Z2 1 D acedari Iniormatan Pom Ub Page 3 2 Beneficimias o5pghedue A Heal Eben E 2 Etec L i cns bam locbed m Muscatne Lounty basg mone parbculery desobed as boke The south hall of Sechon TE LOSHULU CI d ipei BILE 2 TE acre bom loc shed in Delys Cody Lows more pabula descelbesd as hole The rediheasi quater on Section 3 72000000 E ehedule 5 1 Sect HIM Vaus 5 Eliitti i f Ganeral and Tax Related Iniomason 4 Schedula C Motaren Noles end Cash 7 Gift Tax Retuma Fert Haina Bank MO ehacking account Acct rumba 161 1 33 2 B Section 20024 Election z 2 Central State Bark mone marke sconunt Acc number S7 2 4 R9 3 Sechon 6166 Electon imeri ons abori Bemi accrued aa of decedent s death 10 eitesrotetod Mantel Dieductiap J Fidelity Bickitiegs Account Acl ruamber 54 06 6544 11 lenemelated Chantable Deducir 4 3000000 caniae of depot h Fit Hana Bark Ce numb 138 73 346 Interest cote 0 Huy da 12731 12 Rasidua Infannation ou drerit or abro irr c rae es ol imm ms cr YE f S fA combi cl depend velis arii Slate Hn Ld raia 504 4 Idem iab E Hardy dale TUEL 13 State Death Tax Information 1 Intend on abro bern soci et cdd mcm d es A x ohik D rurarin on the Cheers Late Schedule E Pt 1 Elodie Leben Schede E Pot 2 Al ther Jori Inest Schedule P Miscellaneous Property Print 14 Miscell
47. 03 550 000 Wisconsin Health Facility x x x bx x xix xp x ox xxix xix x x Pe Transfer GEM706 lists those assets that will be transferred to Form 706 together with their value and the schedule on which they will appear Click Transfer or type F8 to perform the gateway GEM706 returns to the Main Menu displaying the information transferred from the accounting file Fem 705 Page 1 Fein TUG Page 2 Farm E Page E gt Sohada Raal E ibd Piegaesontetivo 1 XX mcum lam bested ri Hubane Courly loea more particularis described a loliover The south hall of Sechon 16 1 290 DUCLOO EE 2 160 acm Lm located in Condo County loma more patula deicii az todas The northeast quater on Section 31 2201000 00 Schedule i l Section SGA vakans 5 Electons 2 Schedule B St cks and Bend amp General and Tex Related Information 1 Belsouh Cop Unt value 2622 Number of unite 4 100 Exchange NYSE T Gift Tax Future 2 Peed Meter Compass Ur value 18 50 Mumber of unis 250 Exchange HTEE 8 Socbon 232A Election 3 HHI Cermoeatiens Und value 52 BE Humba of units 20000 Exchange NTSE 3 Section b 165 Elacton 1 Deedend on above shock declined prior In decedens death 10 eel Mert De Qe Dried e Tot Ue FEES nb dii UN Gre Nina vm j SEL La curri bees a n i d ena r SE J US ee alias De IBM Uni value 86 25 Humber of unite 1 500 Exchange NYSE 123 375 00 Medbo ap Und wake 22 40 Humbe of ute D 700 Echange HE 1394 dO 0 3 ACCEDER Ta
48. 247 Em n 15 Form 708 ih 66 Elaction 16 Section 20 Ao Will estate pay tases in instalments as proseded in Sibi voces No Will estate fle a protective election as provided in 6166 TUS f No Will esate deter tawes on remainder or reversionary interests as preaded in 967637 19 oen one fv Ne Will estate elect OUT of OTIP treatment of anrruities as presaded in amp 2058 BK TK Cu E Gainey 20 Gi 21 State Rotums SE Sohedum C M Hei and Cort Fuit Hona Bank HOW checka account Acct riumber 1561 1 32 27 2 Central Shale Bark more ake oot ed rune ele To interes or abei ern accrued ae ol deeem fend chats Fuel Backs Aora Ael ruaniber SOR N00 ctio of idera wath Feel Mahoni Bank al ruat 27385 iaa ante 4 TUE Malay date TS TO ODE OCDE T inie ne abere Bem accnaed aa of decedeni s death 715 35 78 00 ceriheate of depont wih Denial Stabe Bank Cai number 57243044 Interest rae 2 Motu die TRY TSO AO interea oe abere em accrued as oi decedent s death m GEM706 has consolidated in the above window all the elections made in various locations on Form 706 Note that the first election relates to the alternate valuation date as provided in IRC 2032 one of the more common elections Click the first Yes radio button to elect the alternate valuation date and click the sixth radio button to elect to pay taxes related to closely held business interests in installments as provided in IRC 6166 fom Ub Page 1 Fam AE Page Form A
49. 3 14 Did decedent have interest in oc any authority over foreign nancial account 15 Was decedent recening an annuity described in the General paragraph of the instructions for Schedule I 16 Was decedent ever beneSciary of trust for which QTIP deduction was claimed by pre deceased spouse s estate and which is not reported on this retum The first tab General Information asks questions that appear on page 3 Form 706 all of which are self explanatory Click on the Tax Related Information tab Ge Federal Estate Tax Returns 2011 Estate of John P Sm F e Utilities Preferences Help Data Entry 1 Decedent information Beneficiaries General information Tax Related Information State Tax Deduction Sechon 16 1 275000 00 3 Prepare and Estate Rep enSeden 72000000 enter d the red 3 900 000 00 en TEE d uri a a a eR EH ERR 7 7 Git Tax Returns a AU andi2 19288 00 8 Section 2032A Election Enter amount of Canadian medial cred 9 Section 6166 Election C Yes No Did estate receive an extension of time to file this retum Yes C No At all expenses debts mortgages and bens shown on tem 16 of the Recapitulation allowable as a deduction on item 17 of the Recapitulation pop Enter amount of allowable deductions C Yes No Qd decedent own any community property C Subtract l 14 Miscellaneous Rep i tit i 15 Form 706 16 9 2 Emer bnef description of spouse s interest to be used on schedules 17 Section 69
50. 5 Header 3 Pr rand Ej 1 1280 00 eparer an RB T2006000 4 Executors Die T mmo E Real Aa ro SEE ES m 7 Gift Te Fietum erect V yel 400 acre farm located in Muscating County lowa mon Sechon particulady described as folicws VO ievtigretangd Kad 11 letemelatod Cha The weet half and the northwest quarter of the northeast T 12337800 12 Residus Infor Mi quater of Section Z2 Range 2 West of the Sth T3 en n 13 State Death Tad Pimcipal Mendian m Muscat County Iowa Bl rss Print DE E 14 Mricellaneous Vues ie Geodon mm kph 16 Section 2032 17 un eel 18 Supporting Fon Linlties 13 otf goo 20 GEMTIS Gating 21 State Futura 156 56 or m5 Tun T IT Fie Urlmes Preferences r Data Entry potek 1 Decederi Inda 2 Baneficimrias 12200000 7 Fr i Gai AR En Pini Sinn SCHEDULE A Real Estate 7200000 5 Elactions For panthy owned property thal must be disclosed on Schedule E see the matrechons on the reverse side of Schedule E 5 Ga land Real estate that ia part of a sole proprietorship should be shown on Schedule F 7 Gift Tax Retu Real estate that rs meboded in the grass estate under secbion 2035 2035 2037 or 2038 should be shown on Schedule 6G 107502 n0 2mpA Real estate that is included in the gross estate under section 2041 shouid be shown on Schedule H Bea eis E you elect section 20324 valuation you must complete Schedule jm
51. 55 Election 10 Inserrelatedi Marital Ded i 11 napmam Chetable Cie C GEMS Sampler enamp FAR 12 Residue Intoration 13 Stote Death Tex Informa Pn Transtar 14 Miscellaneous Rep f Alemate Value 15 Form 705 E Berwficiaries 16 Section 203 Es amp Personal Representatives 17 Pu d 65 lettion A 18 Su 5 uu Double value ol communily property assets and liabibties transfemed Double value af assets transferred to Schedule E Part 1 R6 Assets F Liabiltias FP Cash Disbursements F Proceed ET Tire Propert 5chndube LI C hasslakbbe Pubs arid Srde Gite arel Harpit Schedule F Crai fi Foreman Dash T aces Schedule U Comit bor T aei on Fra Transdis Sehedals f Genaiation Skee Transies Tac Desst Skee Froes True zo Thee FE Pot 1 05T Fueron ecole You are permitted to transfer assets from more than one accounting file for example from an estate and a revocable trust that the decedent established during his life You can also transfer from the same accounting file more than once for example if you later include additional items in the estate s inventory Since this 1s the first gateway you are performing you should check all of the boxes in the middle of the window GEM706 gives you two additional options at the bottom of the window For purposes of the federal estate tax return the Instructions to Form 706 require you to list the full value of community property and then subtract out the surviving spou
52. 66 b date amp 03 01 2013 All except the final question in the above window are self explanatory The final question requests whether the decedent owned any community property GEM706 permits you to identify assets and liabilities as community property See 85 08 If an item comprises community property GEM706 automatically generates an entry that removes the surviving spouse s ownership interest This entry appears as an appendage to each item of community property or as a separate numbered item at the bottom of the schedule which reflects the spouse s interest in all assets on that schedule that have been identified as community property You must also enter the description that GEM706 should use for the appendage or item For example you might complete it as follows 35 Chapter 4 General Data Entry 4 09 General and Tax Related Information Ge Federal Estate Tax Returns 2011 Estate of John P Smit F e Utilities Preferences Help Foam 706 Page 1 Data Entry an E 1 Decedent Information 2 Benehciones T E n 3 Preparer and Estote Rep General information Tax Related Informabon State Tax Deduction pt ait cirea id the nod 3 300 000 00 6 zn clon end Tex al Le payments which will be credited against estate tax 7 Gi Tox Rietuens DEA and 12 1928800 amp Section 2032A Election i Enter amount of Canadian mantal credit 87 55 9 Section 6166 Election C Yes No Did estate receive an extension of time
53. 66 on i D 18 8 ny Form 706 Page 1 Form ME Page 2 Fem 06 Page 3 2e ini E g Option 3 Preparar and Estate Representative 2E Spelling Language Custom Dictionary Edit cuntom dicfinnary hore the cushion cheaper vare Tot Auckeberd vae arid AiD GEMS adu ove Mixbly the cumterds id thes carthion dasasveuy Wied added lo pout custom ray vll De Condensed comet when checking spelling Add this vti EI iet peaa din Chers P Pat 1 ST Fusmofion Fiesconclstion a If you click Auto Corrections GEMS lists those corrections that it automatically makes You can add additional corrections or delete existing ones If you click Exclusions you can delete words from the dictionary For more information see 1 10 of the GEM706 manual Click OK or type F9 to return to the Main Menu 3 06 Utilities Click Utilities on the menu bar and GEM706 displays several options 15 Chapter 3 Data Input Menus and Options Fem ME Page 2 Fear ME Page 3 Scheck A Faal E chal Schedule AT mao JA V abor Schedule B Stacks and Borate Schedule C Mortgages Motes and Cath Schedule D leprae on ne D cecenti Lite Schedule E Part 1 Ohualified Joint Interests Schedule E Part 2 A1 Othe Jeni Interests Schedule F Miscelseenus Property 3 Section 6166 Electa Frredrraneury ird cemahon 10 In amp errelatad Marra Ded Schedule GG Transhers Dunay Diner s Lite 11 ipte Charitable Dii Fiakra rier aiar
54. 75 000 00 AE 2 16D acre lam located im Cady County Iowa more pareuydty described as l ollwr The northeast quater on Sechon 31 720 000 OD 5 EE 3 40D acre lam located m Muscahne County lowa more pamculaty descnbed as fellows The west hall and the neatheves 3 900 000 00 T4 or ZEILE UT 6 General and Tax Related Information Form 70 x a 7 Git Tex Returns Form 70 due dete ORM a4 120 19298 00 8 Section 2032A Electon 57 55 3 Section 6166 Election 107 502 00 10 interrelated Mentel Deduction 4e 250 00 11 Interrelated Charitable i z 455 00 12 Residue Information 37 000 00 1A Sai Deui Co Inca 20 600 00 14 Mi PAN 154 000 00 iscellaneous 61 827 55 15 Form 706 16 Section naa Baon N MN 17 Section 6 NN 583 75 66 203 Ba 06 ty 221 2013 s6 265 00 122701 Mahaty diste 0601 43775 00 146 33 baty date 03 01 2013 50 075 00 311 46 32 506 00 CEZA m YU EE 21630530 o dniesett on above Bem accraed at of decedert s deut 1567 3 Fidelity Brokerage Accourt Acct number 540653584 15 344 74 4 100 000 certificate of deport wth First National Bark Cert number 27302305 Interest rate 4 10 Motuty date 127717 110 000 00 1 Interest on above Rem accrued ar of decedert s death 21525 2 58 75 000 cethcae of depont vath Corral State Bank Cert number 5784 3044 Interest rate 399 Maudy dale 11 20 06 7000000 13 Intrenet on shower iem anenai aa of darnieri Aasi wu T m F7 Add em F5 Delete hem While performing
55. Bene cianes Additonal preresiduary gets Deductions claimed on Perm 1041 Total reductions 190 200 93 Plus Administration expenses claimed on Schedule J but payable out of income Tal additions 0 00 Estate residue pror to payment of taxes QUU cerhhcate of deponi wath Cental Siete Bank Cert ruber 5724 348 miet te 1 Iri J dnienest ce above item sccrued as of decedens deaths 3 541 437 29 on T x 1 2280 ODE TCI een Sechen 3 720 000 00 107 552 00 123 375 00 Tu EDD E RIT SS 5a 532 28 153251 27 E5813 75 20388 0 56 265000 12000 T 33 725000 145 33 E irr n 311 49 tu date DEAD ee a A QU Fehr Thir 1544 4 TOC ECC TCI 25 bisu dae TI XV TAO o 25 Chapter 4 General Data Entry 4 04 Decedent Information Note that there are two tabs one for the estate s residue and one for the intervivos trust s residue Although we will only discuss how to compute the estate s residue the principles are the same GEM706 first reduces the gross estate by the intervivos transfers on Schedule G In the event that there are other assets passing outside probate other than life insurance joint interests and annuities discussed below you should enter that amount in the first data field GEM706 also automatically removes funeral and administration expenses on Schedule J debts on Schedule K and losses during administration and expenses incurred in administering property not subjec
56. Coduet 11 lenemotated Chantable De 12 Residue Intonation Telephone 13 State Death Tax Informatio T Self employed SSN or PTIN if estate desires to auihonze person to act as ite representative balore ihe IRS 4 y indorma ion F l complete the representative wag i C Yes F Ho is estate representatees predefined 7 EE ES 00 17 Section 6166 Election o te shpia beth and 12 18 5 pamis Hs j a and 12 01 Maturity date DEAL 13 G Galway 3 Hanes date CLAN A013 20 GE Gatien 21 State Fietums pole ATE Marbury date 12 571 i Sy Matte dale TLA GEM706 permits you to predefine preparers and representatives by clicking Utilities on the menu bar Assuming you have already entered attorneys or accountants in your firm click the Yes radio button and then click to access the predefined preparers The south hal of Section 16 1280000000 rotthess quater on Sechon 3 T b Ganaral and Tax Related Information 7 Gift Te Retums B Section 20324 Election 9 Sechon 6156 Electon VO bvieretated Marital Dedu T1 leemolatod Chantable De 12 Residus Infarmatian 13 State Death Tax Infor alich M CE llaneout f estata desires io authorize parson to act as its representative before the IRS 15 Form 706 complete the representative information 16 Section 20 lid C Yes Mo s estate reprisentatros predefined be 12 01 2012 66 Eliiction EN revert due dite DGANI and 12 17 Section and 1201 Matunty d
57. Deduction Sedul G T rni Dura Decmderit Lis n dade Vn Kedul 12 Residue lniprmation s Sicha 13 ee oq indicate status of executor commissions Print Sdn a Estimated 14 Miscallanaaus Ri pa aa C Agreed Upon 15 Forn 7 b C Pad Amount of executor commissions a 200 On T r On TA Eb LU T2544 3 Final bil to Muscaline Pure and Wales la eia rence ee 4 Fma Dl to lore Ge ad Electric dix natured gas eres Venu Schedule E Fan z Man gages and Lenis Siha L Pat 1 Nel Laiti D umg Pderranssbahon Schedule L Part c Lxpenass en Property Nor Subset b Clam Schedule M Beguethi ec 16 Surin 5poube OTH Property Al Other Proper 1 Echeduls D lie 1 100 000 00 2o Erhai N variate Publ and Sendu din snl Peer E a 71 F7 Add ltem peupem eem oJ E Click the Agreed radio button and enter 15 000 for the amount of executor fees Then click WES to return to the Main Menu You should enter other administration expenses beginning with item 4 on Part B Currently there are two items on that part that were transferred from the GEMAcct file Click item 5 to add an additional item at the end and click Add Item or type F7 55 1 Decent Infor teherdule 1 Part 2 Chapter 5 Schedules 5 15 Schedule M 5 PAO certhcate of deport with Central Sate Dank Cert number S704 3044 Interest rae LI Maturity date 11 0706 z Beneficiaries z 3 Preperer and E 4 Executars 5 Elections amp General and Te 7 Gih Te Poot
58. E Page 3 J Seheduie A Fleal Este f EA 1 S20 sere burn besed in Mussina Camy bw mons pteubiy deine at folicer The sodth hal ol Sehon T 1 275000 ee sa ELS 2 18D acre ium located in Cedar County lows more parficulariy descsbed as lolowr The norfheasi quarter on Section 3 72000000 A s 3 400 acre Fam located in Muscaline County kwa mons iparbculery descsibed az boke The voe hall and the norihee nuo Elections Schedule A Section HIHA Velustion b General ard Tax Ralated Inicrmibeaon Schedule B Stocks andi Dondi 7 Gift Te Fietums Bakiu Com Und value 25 22 Number of units 4 100 Exchange NYSE B Section 20324 Election 3 Sechon 6156 Electon VO lenerrotetod Marital Dieductig 11 interested Charitable Dedug Yes Mo Will estate elect altemate valuation date as provided in 20327 12 Residue Information M No Will esigte fe a protective election as provided in 520327 17537500 13 State Death Tax Infomalioh M e ves cz No Will estate pecially value real property as provided in 5203242 1920 00 E1 ae 66 e j E 4 C Yes Mo Will estate make woodlands election as provided in 2032 ey 13 inopi 15 Form 7 ihe sagt C Yes C No Will aiao fle a protective election as provided in 5203247 16 Section 20 Yee C Mo Wall estate pay taxes in instaliments as prov ded in 6165 veers 55 Eakin Cos Ho Will estate fle a protective election as provided in 6166 8 Teu Oy ND C Yes T No Will estate defer taxes on remainde
59. Jj Gelpwmy 20 GE GMEw rhedde Paii NATI yannin Mernis 4 Form 706 Page 1 Fem TUE Page 2 Fem ME Page 3 gt Bienes options he Sburer spelirxg errors az pou lypee Be Auipmafic alle comect peling em az you bpe Automates corea CU capitals ff Flag repeated wird when checking speling When checking tpeling igna fF Words in UPPERCASE FY words containing pumibbers backup larsguages HTML ML etc F jrtemet acidetses R Abbeewistond IV Linet begnnng wath any ol the ioloeg gt 7 Data Input Menus and Options 3 06 Utilities You will normally want to show and correct errors as you type Remember the options you select apply to GEM706 and to all other GEMS modules In other words if you configure the spell checker in GEM706 those settings will also apply to GEMAcct To turn off the spell checker make sure that the first four options are not checked Click the Custom Dictionary tab at the top of the window to add additional words to the dictionary 9 Federal Returns 2011 Estate of Jehn P Seith File Utibties Preferences Help Deine Entry 1 Decadent infomation 2 Benghciames 4 Execulorg 5 Elactong 6 Genaral and Tax Related information T Gift Tere Future 8 Souchon 20324 Elechon 9 Section 6166 Election 10 Interretated Martel Ded 11 inapi Chantabilhg Dor 12 Residue Information 13 State Death Tax informato 16 Sactian Z E 17 Section 69
60. LC I DAGEMSAGEMArchNewF i2 FAR E NGEMSNMGEMACEPM anual FAF E GEMSMSE Mieti i mpl FAR ENGEMEM per Files usendg FAR Ce Schedule P Credit Ita Foreign Death Tasa Scheele Credit bor Tae on Freee Translens Schedda R 1 Kanani Shipping Transi Taz Diect Skipa Fron a True Prek ry miiir T Schita n Pai 1 5T PF vannin Miaria Ei m GEMS includes a sample accounting file in the SampleFiles folder when you download the software The default path for this folder is C GEMS SampleFiles and is stored in the primary GEMS folder Remember you may have changed this path when you installed GEMS If the file Sample FAR does not appear in the above window click Open Existing and use standard Windows techniques to locate the file See 82 05 Click on Sample FAR to select the file 22 Chapter 4 General Data Entry 4 01 Introduction 4 Federal Estate Tax Returns 2011 Esate ol Jahn P Smith File Utibter Preferences Help Fem 706 Page 1 Dena Erny Fem ME Page 2 1 Decadent infomation Fem AE Page 3 Beneficiermrs Schechde A Final E iiaa if atento Ponquressentative Schedules A mtn ZUG bao A caesar Schedule B Stocks and Pores vj A Sboheduls C Mitaaget Nobes and Cah 5 Electons Schedule D leburance on r Decadent Lite 6 General and Tax Related Information Schedule E Part 1 Qualised Joint Interests 7 Gift Tex Raiens Om 8 Secon 20324 Election GEMAcct Gateway 3 Sacton BT
61. Method Business Interests 6 General and Tax Relat Git Tox Returns Ded A ing the Adjusted Gross and 12 19 2880 8 Section 2032A Election Estate as defined in 561664 e 87 55 9 Section 6166 Election 107 802 00 10 interrelated Marta Ded With respect to transfers within 3 years of death D 105 000 00 pa PrE tm Al assets transferred within 3 years of death and included 455 00 Residue Information in the gross estate as provided in 2035 a 97 000 00 13 State Death Tax Inf 20 600 00 Closely held business interests transferred within 3 years Print A of death and included in the gross estate as provided in 14 Miscellaneous Repo 2035 a 15 Form 706 16 Secton MAREN on Enter facts forming bases for conclusion that the decedent was e 17 Secton G66 Elation business and estate that qualfes for the 6166 election Reg 20 6166 NbX6 18 Supportag grms Utliies 13 GEMAbd Goteway 20 GEM703 Gateway 21 State Retuens 775 000 OD 2 000 OD noffw 3 30 ODU OD 4 100 000 cethcote ol deposi wath Fest Nabonal Bank Cet number 273827936 Inkeses tate 4 10 Mohaty date 12 73 10000 OD T inimes on above deem accrued as of decederi s death e 5 QU F7 Add ltem p E General Information Tab GEM706 must calculate the value of the decedent s adjusted gross estate to determine whether the estate satisfies the 35 per cent threshold requirement of IRC 6166 a 1 and to determine the m
62. O estia of degit wth Feel Maona Bok est rassibes SPREE Inienesl sabe A TIG Maturity date TAI 1 Inierest pe abere iem accnaed az oit decedens dear i mo 8 SPBZUUDeheate ol deponi vate Cental Sate Bank Cert number 5724 044 Interest rate L9 Mount dae TOV TSO inerea cn above iem accnaed ar of decedent s death wx Enter Executor as the personal representative s title in the first data field If there are two or more the title should be plural Click Add Exec at the bottom of the window to enter the executor 9 Federal Estate Tax Returns 2011 Estate of John P Sm File Unite Preference Help cum TE Page 1 Fem 706 Page 2 Fom PUE Page 3 Schedule A Pies Estan Data Enry 1 D acediani Intormaton 2 Baneficimrias 3 Preparer end E siete Fiepresentalrae 4 Execulons 5 Elections B General and Tax Related Intonation 7 Gift Tex Fietums B Section 20524 Election 9 Sechon 6156 Electon VO beitiermotatod Marital Deduct 1 XH aere bum besed in Muscahne County bows mone pebeubriy descsibed as fellewr The south hal ol Secehon T 1 593 DI OI 2 80 mre tom locabed in Cels Courdp leave mone parbiulary descsibed as fol The rertheast quater on Section 3 72000000 Schedule A Section 2328 Valuation Schedule B Stocks and Bonds ZI thi 1 C Yes 5 H ipee ees rada as the one to 11 letemotated Chantable Di j 12 Residue Intonation 13 State Death Tax Info C Yes H ls executor a benefician fv Yes
63. Publishing com E Dae Draai Mime LH jr E xxr Piecen Files CAGEMSAT alor Fl Jones FET CARE MS Flurliph FI Frupps FE T CAGEMS Donald T Moot FET CGE MS ale T Keine FET CAGEMS Donna E Crist FET Lr AS donor k Hlad FE T CAGEMS H aokd E Starkey FET Lr MS aioe T Hier FET CAGEMSAThomas T Tank FET Lr MS ah A arad FE T CAGEMS Sun T Jones FET CAGE MS ohn F Smlh FE T i TEMS Thiig Single LU Yeu hay Bc naedg Gales fH inl the Soler ing offs Norman Caracal If this is your first client file your Recent Files list will be empty but every file you initialize will be added to the list Click Create New GillettPublishing com Ji AcctFiles Documenti al Music ma Pictures B Videos a DE Computer EL 0513 amp 2 DVO RY Om EF Aus fig Network Ji Dictionaries jk EstateFiles Ji Gimis I cro Je GMTO Files J ihia je Giterites di Hep d SampheFiles Ji User Files F Donald T Akoh FET Donna Crest FET bbs E fanals CET a 2 03 Location of Data Files By default GEMS stores data files inside the GEM706 folder on your hard drive It is recommended that you create a new folder outside the GEMS program for your data files After you create that folder you can locate it the data field at the top left hand portion of the window Once you create and open a file from this new location GEM706 will default to that folder the next time you create a file
64. Recrebisr SCHEDULE D Insurance on the Decedent s Life gg m 5 Flectone Fou must list all policies en the life of the decedent and attach a Form 712 for each policy zu bb 06 i m Alle mate EU 5 General end Ta m valuation dati 7 bei T Gift Tex Ratan 57 55 8 Secton 2032A E L 4372500 8 Sacson 6166 El 7 14533 10 Inserretatedi Mari 55 075 00 11 Inberretahed Cha 311 4B 12 Posidint nija 32 505 ON 13 Siete Death Ta AG Tab 15344 4 14 Mis umts TIO 00 15 Farm 708 23535 15 Section 2 32ATE i E TODO 17 Section Beh j amp 371 18 Supporting Fo Eni Vinevernty of LIkDshoma Foundahon ET 21 Siete Riturn 15 00 Ord 120 000 00 Check he laevi d Socr H ANIA Else ion GIGS Elec tony 12 000 00 r r Business interest 10 00 00 r Beneath the item description GEM706 permits you to identify the beneficiaries The table lists those beneficiaries that you have already entered in the Beneficiaries program division See 4 05 Unless the insurance is payable to the estate you should enter each beneficiary s percentage interest in the policy proceeds GEM706 uses this information to complete the beneficiary table on page 2 Form 706 If you identify the beneficiaries and their respective interests GEM706 prints that amount together with the other gifts they may have received as identified on Schedules D E and I and in the Beneficiaries program division in the beneficiary table on page 2 Form 706 Asa
65. Schedule Credit bor Tanx on Prior T rane E Seheduls Fi 1 Generation Skicping Transles Tac Diest Shige From a Tius 83 06 Utilities The first option permits you to enter interest rates that have been released since GEM706 s last update Click on Calculate Interest on Federal Tax to compute interest 12 Residue Information 13 Stole Death Tox lniornfapor Print 14 Miscellaneous 15 Form 708 16 Section 17 Section 6966 N 1 Sing F a gt Utiities 18 Goteway 20 GE Gmeway 21 Stete Returns Fom 706 Pog Fom 705 Page 2 Ferm 705 Page 3 Schedule A Real E skulm Schedule A 1 Sechon 2U32A Vakabon Schedule B Stocks and Bonds Schedule C Mortgages Notes and Cath Schedule D lesuranoe on the Decedent s Lie Schedule E Part 1 Qualified Joint Interests Schedule E Part 2 All Other Joint Interests Schedule F Miscelareous Property Al Other Property mo Schedule 0 Chaskable Pubic and Sando Gits arid Bequests Piekreuty ricemator Schedule P Credit lor Foregn Death T axes Schedule Q Credit for Tax on Prior Transders a Schedule A 1 Genatution Skipping Transter T c Dieect Skips From a Trust Preliminary infomation F7 Add hem FB Add Appende ze After you indicate whether it is an underpayment or overpayment the amount and the dates click Print or type F4 to display the report 19 Chapter 3 Data Input Menus and Options 3 06 Utilities be Waa 4 m Pap
66. T CGE MS ohn P Smlh FE T Yreloasma TEMS Tiag Single Li Wou has Bened GEM f inl the Soler ing offic Bormann Corse GEM706 also displays the path for the folders in which you created the data files To select one of the data files displayed simply click on that file and GEMS proceeds to the Main Menu Accessing Other Existing Files You can also access other existing data files from the above window Click Open Existing and GEM706 displays the files you have created in the current file folder GillettPublishing com Cigane Hew folder Uy Emvorites Name Ji AcctFiles di Dictionaries Documents jJ Estatetiles afl Murit ji GERM ime Pictures J emma B videos Ji GEMTOS Files ji GEMAecet IM Computer Ji Gites amp osc ji Help amp 2 DVD RW Orve 0k udo Ji SampleFiles JE User Files fig Hetwark F Denald T Alcolt FET F Denna E Cert FET m biwahdE Crus es DET 7 FET The folder where these data files are located is displayed at the top of the window You can also click 7 to the right of the data field to drop down the selection box and to navigate to a different folder following general Windows conventions GEMS includes a sample accounting file in the SampleFiles folder when you download the software The default path for this folder is C GEMS SampleFiles and is stored in the primary GEMS folder Remember you may have changed this path when you installed GEMS Chapter 2 Creating and Acces
67. T Git Tax Fatum 8 Secton 20324 Bl 3 Section 166 EI I j 10 In amp arretntad Mar L h Use deba 11 interrelated Cha Beitsnuth Corp gt various 12 Poecsicui Indoema Unit value mmm 13 Sinie Death Tan Humber of unite 4 100 123 375 Or i Exchange M 154 ESL OO Print 61 827 55 14 Miscellaneous A 15 Farm 708 popped 15 Eection 203248 203 B2 06 17 Section Geb E ae 18 Supporting Form E 1820800 d 5755 L amm CusiP iN BLS EE 711 48 1 275 M DT Lo 20 000 3 300 000 00 Hern riurnber Page Brews FlHM acea 32 565 00 ET 1567 15344 74 170 000 00 M535 F4 Hex Below the item description GEM706 requests the item s CUSIP or EIN number This information appears in a separate column on Schedule B GEM706 also uses the CUSIP number to obtain the values of stocks bonds and accrued income from Estate Valuation amp Pricing Systems Inc There are two ways to identify securities Although it is easier to obtain a stock s ticker symbol CUSIP numbers are more accurate You must use CUSIPs to price most bonds In the right portion of the screen you enter the relevant information with respect to the asset s value as of the date of death on the first line and as of the alternate valuation date on the second line When you enter the unit value and number of units at the date of death GEM706 displays the same amounts as of the alternate valuation date If the values a
68. a radio button response that you have not already answered In the basic word processor the Tab key advances you out of the text box As a result you must type Ctrl Tab to enter a tab in the word processor Function keys There are also several functions keys that are active in various portions of the program To utilize these keys you can type the function key or click the button on the screen that corresponds to the key The various functions keys are F3 F4 F5 F7 F8 F9 Returns to the previous item on a schedule Advances to the next item on a schedule Deletes an item on a schedule Adds an item to a schedule Adds an appendage to an item Closes the active window F10 Permits you to recall a macro while you are using the word processor F11 Access the full word processor when you are in the basic word processor window Data Fields Generally A data field 1s the available space for an answer to a specific question When you are on the Main Menu select option 1 by either typing the number 1 or clicking on Decedent Information to display the following gt Federal Estate Tax Returns 2011 Estate of John P Sei First name and middle initial Korn P Last name Smith Socal se curd nidis Date of birth Dinig of desh 41 2011 County state and ZIF ar foreign Sar extardahed coun of decedent s domicile woh Testate C Yes C No Retired C Yes C Ho Ciecupemon ar inner occupatam Cifizenship at death Marrad C Wired
69. aneous Ftepoe 15 Poem 706 k A f 16 Section 2ijairEliion 17 Section 6166 Election t 3 Mipcellanecur houpsholkd hunichings 18 Supporting Foma e 2 Fumeqgapmernt MEL V 3 2004 Ford F150 Truck R 4 2005 Cheviclet Malibu Ey o Schedule G Transient Duma Decedent s Like 3EMITS Cinbirwery i 21 State Futums Schedule H Powe of Appomtnent Schedule Argus Shemale J Prud A Furia E art Shedd J Parl H Aeir E xpo d Pyri io Diois Lande ond Coulter lor giam fees axom n t l F7 idd Eam Note that the items on Schedule B have disappeared and that now appears to the left of Schedule B Click l to display the items on Schedule B In the right column on the schedule tree GEM706 displays the item s value as of the applicable valuation date either the date of death or the alternate valuation date In most cases this value is the amount you entered for that item and is the amount that will appear on Form 706 For the exceptions to this rule see 4 03 of the GEM706 manual To add the first item to a schedule highlight the schedule name or 1f the schedule contains preliminary questions you may also highlight Preliminary information and click Add Item or type F7 To add additional items highlight the schedule name or any other item or appendage on the schedule and click Add Item GEM706 adds the new item immediately after the highlighted item Appendages are similar to items On the schedule tree and on the item s
70. ar orn Polla bomi Schedule Part A Funeral Eigandi jen Miscellaneous Fie Schedule J Par B Administration Expenses E iecur comme tion 15 Form 708 ribi fon 16 Section 203 cuir 17 Section BBE SS Schede Pt 1 Chote cid Hee Cl ncn 18 Su Schedule K Past 2 Moiigages amd Lena V Schedule L Pat 1 Net Lace During Pudensitr ation Schedule L Pat 2 Exgenzes on Property Hot Subyect to Claret TN a ing to Sunmang puie Mehra rice OTIP Proper Al tke Property z Casi a a Serde Gils aral Berets ScheddaP dtf Foreign Dah Taxes Schedule Credit bor Tan on Prior T rane Shaik RA Pris Skip Tranche Tac Drect Sige From a Diui Peli n d Airi T Scheele ui ee 0 0 0 0 1 FI m GEM706 incorporates a sophisticated spell checker that highlights misspelled words in both the basic and full word processors Click Spelling to configure the spell checker 14 Chapter 3 Ge Federal Estate Tax Returns 2011 Estate of John P Seith File Utibties Preferences Help Dena Erny 1 Decedenit information 2 Benehciames 3 Pre pant and E state Pongaesentetiun 4 Execulorg 5 Elactong 6 Genaral and Tax Related intonation T7 Gift Tere Future 8 Souchon 20924 Eliechon 3 Sacin 6166 Elecman 10 Interrelated Marital Ded 11 Internatio Chewable Dro 12 Residue Insomnation 13 Siole Death Tax informato Print 14 Miscellaneous Fia 15 Form 70 16 Section 203 i h 17 Section 166 on I 18 Sip Pon a Litas J 18
71. asi quater on Section 3 720000000 s Schedule A1 Sacin 20325 Valuation 5 Elections E Schedule B Stocks and Dondi 6 General and Tax Ralmed Intomaton 1 Belouth Dom Undvelue 2522 Humber of units 4 100 Exchange NYSE 107 552 00 T Gift Tex Fuetums 2 Fenice Company Lnd value 18 50 Number of uris 2 500 Exchange NYSE B8 Section 20324 Election i m 3 HE Loon Ung ulus 52 50 Humber ol unii 2 00 Exehanoe HYS r 3 Sechon 6166 Electron SEM TO Gatmaay s VO bertespelatodi karibal bio Dedi 3 Preparer end E siete Pepresentaie 11 betemoletec Charitable Doe 12 Residus Infanmatian Mri 13 State Death Tax Informai LE E 1531750 27 EAI rS i 203582 0 15 Socian ome by date 12 01 2013 17 Section 6166 Election oS IES inimiet due date DETI and 12 Of and 12 01 Maturity data DEO THA Maturity dera NS Schedue C Mangager Motes and Cath Fei Haana Bank HOW dhach account Aco ruber 161 1 33 2 Druid Slade EL irre ii vel tani Arci nans SATE T o Inteted on shee dem acre a oll dcm erdt eai Fadeliy Biok iiir Auta Suck ruamber AESA 15244 74 S1 CL DEOR ciai cod especial vals Fat Mosca Blank Oe mute 27 3T Inderal sabe 4 TIG Masanby iae 1271 T0 OO OO 1 interest ne abere iem accnaed ad pi decedens deat 21535 775 00 cabis of deponi vari Cental Siete Bank Lent mambe 5723 X48 mie ee 397 Manny dese T1 XV PRO dnienest ce above item accrued as oi decedens death rx 9 ET F You can clic
72. ate DJ 18 i a tilbes v n Gateway I Maturty dare 01 2013 21 State Fuetuma mA TS Malunby dale 12 511 he EY Mant due TIER To select a preparer click that person s name In the lower portion of the window you can identify a person to act as the estate s representative before the Internal Revenue Service The representative may also be predefined Click to return to the Main Menu 4 07 Fiduciaries Select option 4 on the Main Menu to identify the fiduciaries 3l Data Entry 1 D acediani Infarmatan 2 Beneficiaries 3 Preparer end E siste Pepresentaine 4 Execulons 5 Elections B G neral and Tax Related Intcrmton 7 Gift Te Fietums B Section 20524 Election 3 Sechon 6165 Electon 10 beiteerritetord Marital Deduct 11 leacmodated Chantable De 12 Residue Information 13 State Death Tax Info 17 Section 18 5 General Data Entry Chapter 4 4 07 Fiduciaries 1 Xeno bum besed in Huscahne County baw mont pabiru descsibed as lellewr The south hal ol Sechon T 1 28000000 2 80 acre Parm located in Ceda Courdp lows mone parbeularhi descsibed at bokek The restheast quater on Section 3 72000000 Schedule Ail Section 20324 Valuation Schedule B Stocks ardDondi ei stunty date CEL 2019 Edi Exec Detete Exec 2 Geka Sise Bank morep nake mcin Acl bee Ross 1 Interest cro Abico cras acc ol mcm rez aah 3 Fubeliy Ecken Aogun Berd ruber 54 bs S a GNO DO
73. ated information Schedule B Stocks and Bonds 7 Ga Tex Fotums Y 20 000 lowe France Aclhosiy Command Rehabilitation Providers Interest tate SEX Inisi due dile OF and 12 0 19298 00 8 Section 2032A Election Y inimesi on above bond accrued at of decedert s death 3 Section 6166 Election 2 BebkouhCop Unt value 26 22 Numba of units 4 100 Exchange NYSE A413 Motus Cues r 250 Mumbe of un 0 Shae NYSE gt 17 Section 6166 18 Su Udlitios i M Maburiy dale 12 01 2013 1a date ORDI and 12701 Mahanty date DGAN 20 GEMY Gateway 16 50 000 Weconsn Health Factty interest rate 5 25 Interest dum date 03 01 and S UY Mahariy date 03 01 2013 21 State Rotums 1 Intewett on above bond accrued at of decedert s death Schedule C Mortgages Notes and Cath Fest National Dank NOW checking account Acct number 161 1332 Cerita State Dank money market account Acct number 5672 0900 Vo Intesett on above Bem socnued at of decedert s death Fidelity Brokerage Account Acct number 54 063584 100 000 certificate of deposit with First National Bark Cert number 27382504 Interest rote 4 10 Meturity date 12 217 1 Interest on above Rem accrued ar of decedert s death 75 000 certificate of deport vath Ceniral State Bank Cert number 5784 2044 Interest rate 399 Matunty dale 11 30708 70 000 00 Liniar on shower em scene aa of decendeni s death qu m T Click Select All and then Print 63 Chapter 6 Printing 10 04 Section 6166
74. aximum amount of federal estate tax that the estate can defer The adjusted gross estate is defined in IRC 6166 b 6 to be the value of the gross estate reduced by amounts allowable as a deduction under IRC 2053 and 2054 The first question requests the amount of allowable deductions GEM706 deducts this amount from the value of the decedent s gross estate to determine the adjusted gross estate as defined in IRC 6166 b 6 You should enter the allowable deductions not those actually allowed The second and third questions relate to gifts that the decedent made within three years of death and that are included in the decedent s gross estate as provided in IRC 2035 If prior gifts are involved the estate must satisfy two threshold tests 1 The numerator of the first fraction is the value of closely held business interests included in the gross estate and the denominator is the value of the adjusted gross estate and 2 The numerator of the second fraction is the value of closely held business interests included in the gross estate less the closely held business interests transferred within three years of death included in the gross estate as provided in IRC 2035 a and referenced in IRC 2035 c 2 and the denominator 1s the value of the adjusted gross estate less the value of all assets transferred within three years of death included in the gross estate as provided in IRC 2035 a and referenced in IRC 2035 c 2 If either of the abov
75. by highlighting her name and clicking Edit Bene or by double clicking her name 2l V Federal Estate Tax Returns 2011 Estate of John P Sei 2 Benehciames 3 Prepare ond Estate M General information 4 Exeeutors 5 Eloctons amp General and Tax Rel 7 Cit Tax Reta B Sircion 20324 Elects 3 Sacton G166 Elector 11 Interretated Martel 0i 11 nana Cheat 12 Residue Information 13 Stote Death Tox Infor 14 Miscellaneous Rapa 15 Form 706 AA 16 Section ZNAE acti 17 Section 6766 Elettior 1k Suppa gor Uelitias y a i 19 GERADA Gateway 20 GEMTS Gmeway 21 Siete Returns Enter the foliowang beneficsary information Name Mary L Smithi Address 2032 Fareway Dire Muscatine Sate LA Taxpayer ID 123 415 6799 Spouse E vee C We Relationship Sewing spouse For purposes of computing the amount received by surviving spouse and shown on line de page 2 Form TOS enter amount received other than that shown on Schedule M dp 52761 Description amount and source of preresiduary gifts Dea crngoen Lift ansurance on Schedule D Joint tenancy property on Schedule E Part 2 Annuitias on Schedule Estate Trust Esa Trost Estate Trust E List beneficiary in table on page 2 Form TOG Chapter 4 General Data Entry 4 05 Beneficiaries hal of Secor 16 1 2582 ULL DU ste on Fein D1 520 DOO OUO Tar AO E 46250 00 1 05 nOn 06 amp 55 D Si DUCI EXE ZU BUE LXI 172 375 10
76. cate that the real estate is a business interest The final data entry window for item 3 should appear as follows Ge Federal Estate Tax Returns 2011 Estate of John P Smith File Utilities Preferences Help Dota Entry Schedule A Item 1 Decadent 2 Benefician 3 Preperer end E 127500000 TERES 3 72000000 SCHEDULE A Real Estate 3 300 000 00 5 Electons For jointly owned property that must be disclosed on Schedule E see the instructions on the reverse side of Schedule E 6 General ond Real estate that is part of a sole proprietorship should be shown on Schedule F Git Tex Ret Real estate that i5 imcluded in the gross estate under section 2035 2036 2037 or 2038 should be shown on Schedule G 8 Secton 2032 Real estate that is included in the gross estate under section 2041 should be shown on Schedule H 3 Secton 6166 If you elect section 2032A valuation you must c 10 ierreloted Description 11 Interrelated Q 12 Residue Into Page Brew 13 Stato Death The decedent owned the following as tenants m Print common wih hes brother Max R Smith 14 Miscellanec 800 acre farm located m Muscatine County kowa more particularly descnbed as follows Altemate valuation date 15 Form 706 5 E s 4 The west half and the northwest quarter of the northeast arum S quarter of Section 22 Range 2 West of the Sth 18 Supporty ri Principal Meridian in Muscatine County lowa U3 BR Oh 5s 265 00 Uslities 0 19 GEMAcc Ge E 20 G UNS gH
77. ciary classification Click or type F9 to close the active window and return to the Main Menu Interest Calculations GEM706 calculates interest on underpayments and overpayments of federal estate tax Again select Utilities on the menu bar and then select Interest Calculations 18 Chapter 3 Data Input Menus and Options 10 interrelated Marital Ded 11 inapti Chesitedblo Cip 12 Residue Inigrmatian 13 State Dealh Tax informato Print 14 Miscellaneous Fa 15 Form 70 16 Section 20 h 17 Section 6766 Election gt 18 An Utlitias 18 Getewsy 20 GE Gaee 21 Simie Returns Schedule D lnurance on fre D cedeni Li Schedule E Part 1 Ciualfsed Joint Interests Schedule E Part 2 All thes Jori nine i Schedule F Miscellaneous Pinperty Perray rioen Sehida G Transiers Quang Descedieni s Lil Fierro iira Schedule H Pirat of Agpantmert Frelrann indication Schedule Part amp Fursa Expenses Schedule J Part D Administration Expenses E vecutor commertion Alice hees Actual bees Schack K Pat 1 Dabi ol Heu Decherd Schedule K Past 2 Motigages anc Leer Schedule L Past 1 Hel Lip During Adani Sehed e L Pat 2 Expenses on Property Hon Subject to Chane E Schedule M Bequests e amp t to Surviving 5poute Prelirarery information OTIP Proper All Ires Property E Schedule Chaciable Puls and Samdbos Gitte aral Eee Feier my ind iecur Schedule P Crai Hos Fait Daaih T ass
78. creen GEM706 designates the first appendage to item 1 as number 1 1 However GEM706 does not assign appendages separate item numbers when it prints the schedules For example look at item 3 on Schedule B which has an appendage representing accrued dividends To add an appendage to an item highlight that item on the schedule tree and click Add Appendage or type F8 GEM706 always adds the new appendage after the item s existing appendages To delete an item or an appendage highlight that item on the schedule tree and click Delete Item or type F5 If you delete an item GEM706 deletes all other information relating to that item including its header and appendages Some schedules contain questions relating to assets that appear on those schedules For example Schedule F includes questions with respect to collectibles bonuses and safe deposit boxes To answer these questions select Preliminary information which immediately follows the schedule name on the schedule tree 5 02 Schedule A The sections describing the entry of information on Schedule A generally apply to all asset and liability schedules Schedule A currently has two items To add an item at the end highlight item 2 and click Add Item 44 Chapter 5 Schedules 5 03 Word Processor File Utilities Preferences hi Data Entry aee 1 Decedari inio 2 Beneficiwies SCHEDULE A Real Estate For jointly owned property that must be disclosed on Schedule E se
79. ction 2 32ATE 17 Section amp t b EM 18 Supporting Fa Liitos 18 J Gate 20 GEH S Gate 21 State Riturn 7 Chak hs harthart lo Schede M Now type F4 to advance directly to the appendage 49 Chapter 5 Schedules 5 11 CUSIP and Unit Values Schedules B E F G and I Deta Entry 1 Decedent lori 2 Baneticianas 1 275 000 OO 3 Prepare and EMIT SCHEDULE C Mortgages Notes and Cash 00M 220 000 00 __ For jointly owned property that must be disclosed on Schedule E see the instructions for Schedule E f iam 4 Executions ames dT Albomnate Altamata Value at date emi i valuation date value of death NEM 8 Secton 2032A E 45 250 00 8 Surcton 6166 Eli 7 i 105 000 00 10 Intarreintad bia 455 00 11 Inferrelated Cha 7 00000 12 sid om can 13 State Death T ex 154 990 00 Evil Baar SS 14 Hiscell amp snaa 4 538 280 15 Farm 706 perspi 15 Section 2U3SAT SERE DE 17 Section teh Elk 55205 00 57 55 A3 705 DI 14531 o do DI 711 48 Appendages are similar to items On the schedule tree and on the item screen GEM706 designates the first appendage to item 2 as number 2 1 However GEM706 does not assign appendages separate item numbers when it prints the schedules Click OK to return to the Main Menu and then double click Schedule C to preview that schedule Ra Td diis 4 Rob Paget oft A m B eom Vocem TOi Rav H 20000 SCHEDULE C Mortgages Notes and Cash For jointly owned proper
80. d 11 Interrelaled Che The decedent owned a 100 000 Ife insurance policy l Wenous A8 T2800 12 Residui Ind om Fuss creer her vits Mutual of Mevr Work policy X45 125 31 1 243 533 that was payable to Mary L Smith the 75 OU 13 Sinite Death T 71148 Pt 3 556 00 14 Hiis i5cellenea xe Lf a 15 Farm 706 15 67 16 Section 2032 i 1544 74 17 Section t t i 770 000 00 18 Supporting Fa Sun 5 21535 z E 7000000 ETT a ae Lirevertity of Ciklshema Foundstion 35 33 20 GEM TUS Griewi FiDMaw FLA 21 Seti Furturns iw Len l lire LETIL LL ANIMA E lese fent EIEE Election D Tranales Pull descnphon r Business interest r 52 Chapter 5 Schedules 5 12 Beneficiary Designations Schedules D and I Since you have indicated that 100 is passing to Mary GEM706 reduces the estate s residue by the amount of the life insurance However for purposes of computing the amount passing to the surviving spouse which appears on line 4c page 2 Form 706 GEM706 uses the total from Schedule M as adjusted in the Beneficiaries program division See 84 05 As a result you still must include on Schedule M life insurance proceeds that qualify for the marital deduction The first check box in the lower portion of the window permits you to identify this asset as passing to the surviving spouse and qualifying for the marital deduction on Schedule M Since this box is checked it will appear on Schedule M Part 2 You must indica
81. d Copying Items cannot indicate the value of the item should equal the optimum marital deduction in the lower portion of the window The second way to value an item on Schedule M is to indicate that it comprises a residual gift If you advance through the amount data field without entering a number GEM706 permits you to value the item as a fixed percentage of the residue of the estate or trust You define both residues by completing option 12 on the Main Menu See 84 03 For more information see 4 33 of the GEM706 manual If you indicate that the surviving spouse received a portion of the estate s residue GEM706 determines the amount of the marital deduction by multiplying the percent which you enter on the above screen times the estate s residue prior to the payment of death taxes This amount appears on the Residue report that you can print by selecting option 14 on the Main Menu similarly if you indicate that the spouse received a portion of the residue of an intervivos trust GEM706 multiplies the percent times the trust s residue prior to the payment of death taxes If the spouse received a percent of the residue the instructions for Schedule M require you to attach a computation When printing Form 706 GEM706 prints a summary of the residue calculation for each item that contains a residuary gift You may elect to attach this summary to Form 706 to satisfy the reporting requirement However in some instances the Instructions for Form 706 req
82. e 11 beaemedated Chartable De j 12 Residus Information ben eie 13 State Die ath Tas Informatics ae Ele w Print LT Ac ie 14 Miscellaneous Phe perd 15 Form 706 AIEE 16 Section 20 P ma 17 5aciion amp B66ElBrtion due date DET and 12 18 5 ima T NI T MOT Maturity date DEA 13 GEM ACO Galawa hy data OTS 20 GEMM Ganwe 21 State Ritums ID Mabunby date TAA OOO 25 Er Manet dus VR FEO an In the upper portion of the screen you should enter any adjustment to the unified credit which appears on line 10 page 1 Form 706 If the decedent made gifts after September 8 1976 and before January 1 1977 for which the decedent claimed a specific exemption the unified credit must be reduced by up to 6 000 For more information see the Instructions for Form 706 Otherwise you should leave this data field blank The second data field permits you to enter a credit for gift taxes on pre 1977 gifts You should compute this amount in accordance with IRC 2012 For more information see the Instructions for Form 706 GEM706 includes your entry in the total credits shown on line 15 page 1 Form 706 37 Chapter 4 General Data Entry 4 10 Gift Tax Returns In the lower portion of the window GEM706 displays all years between 1932 and the decedent s date of death in the left column of the selection window Note that between 1971 and 1981 gift tax returns were filed on a quarterly basis Assume that th
83. e Representatie Schedule G Translat Durro Decmdeni s Lie 4 Executors Schedule H Powers ol Apporimeni 5 Elections m Schedule Arrulies 6 General and Tax Related Information 7 Git Tax Retuens Schedule J Part Funeral Expenses 8 Section 2032A Election Schedule J Part B Administration xpermes 9 Section 6166 Election mme 10 interrelated Marta Deduction Schedule M Pre 11 interrelated Chartable Dedu 12 Residue Informebon e No Did property pass to surviving spouse as a result of a qualified disclaimer 13 Stato Death Tex iniomdaton In what country was surviving spouse bom nt 14 Miscellaneous Repo What i sureeng spouse s date of bith 15 Form 706 Is suming spouse a U S citizen 16 Section 203 ES K KM spouse is naturalized enter date 17 Section 6966 E 10 Supp y Spouse s country of ctizenship Unlities 19 ados STIP Propa 20 GE Gotewey Al Other Propert 21 State Retum 1 Schedde D ltem 1 Schedule O Charitable Public and Siete Gits and Bequests Schedule P Conci hor Forma Dasih T aom Schedule Q Condi foe T ax on Por Transfers Schedule R1 Geretater Skppng Tiatia Tax Drect Skipt Fiom a Trost Schedule R Pat 1 GST Exemphon Aocornckshori After you have answered these questions click i to return to the Main Menu Schedule M has two distinct sections For purposes of data input GEM706 refers to these sections as Parts You must include items for which you are making a QTIP election
84. e decedent made a 100 000 taxable gift in 2009 double click on 2009 or highlight 2009 and click Edit and complete the screen as follows Scie foam sth Page 1 Fem 705 Page 2 Bg 3 Preparer and Esiste Representaln au cime hy urad creci fine TU Forn 70b Rss Cred ex gil aos on pre 1877 gam i i 5 Electons wh tT ct ol B Gaareerand ard Tax Hraleded Intcmt 7 107 502 00 7 Gift Tax Retuma B Section 20324 Election 5 Sechon 6166 Electon Daw 10 irigretatod Merits Deductign 3r 11 letemodatod Charitable Orden Bee 12 Residue Information E Henan 13 State Death Tax Informatio as apee Print j Peer i EE E 14 Miscellaneous Fe Gift Tax Return 200 3 Vedan i 15 Form 706 i Et 813 75 16 Section 2033 in Was gilt tax retum fled for period Yes C Ha y ona 17 Section 6366 El ction due date DEDI and 12 13 18 5 s IRS office where ratum was Bled Kansas City MO ees an Taxable gts made during period 100 000 00 O1 Maturity date DEAD 13 GEMAG Gateway Hany of above gifts ane included in gross estate complete the follwing b dna 0 01 2013 20 GENTIS Giahinwery Amount included in grass estate 21 State Futums Gih Lax paid by spouse on these quis E any of above gts qualify for special treatment of spia giis complete the following Amount qualifying fer special treatment Gift tax paid by decedent on these gilts 15 44 74 Ux Mon dae TA TOU 15 Dex MahetdseTLCEV OUD
85. e devoted to the entry of the information relating to the estate s assets and liabilities To the extent possible GEM706 avoids asking questions that based on your previous answers are irrelevant For this reason you may see inactive questions on the screen 3 02 Function Keys and Cursor Control As you navigate throughout the data entry windows various functions keys control cursor movement GEM706 always displays the active function keys on the screen These keys duplicate typical Windows functionality Since you are not required to manually save data there is no dedicated Save key GEM706 automatically saves your data as you close each data entry window This feature common to all three GEMS modules minimizes the chance that data will be lost if you experience a technical problem with your desktop or server application Options on Main Menu To access an option on the Main Menu the left pane you can simply type the menu number and advance to that option directly or you can click the option with your mouse 11 Chapter 3 Data Input Menus and Options 3 02 Function Keys and Cursor Control Cursor Control There are several keys that control cursor movement The Tab and Enter keys advance the cursor to the next active data field and the shift Tab key returns the cursor to the previous field As you advance through a window the cursor skips those questions that are inactive The cursor also skips those questions associated with
86. e fractions is less than 35 per cent the estate cannot elect to defer any portion of its federal estate tax At the bottom of the window you must enter a statement setting forth the facts that form the basis for the estate s conclusion that it qualifies for the deferral of estate tax See Treas Reg 20 6166 1 b 6 Payment Method Tab Click the Payment Method Tab 40 GD Federal Estate Tax Returns 2011 Estate of John P Sm fae Utilities Preferences Help Data Entry 1 Decedent information 2 Benehiciones 3 Prepare and Estate F 4 Executors 5 Elections 6 General and Tax Rela 7 Git Tax Returns 8 Section 2032A Election 9 Section 6166 Election 10 interrelated Marital Ded 11 interreloted Chamabie E 12 Residue Informetion 13 State Death Tex lefomii Print 14 Miscellaneous Repo 15 Form 706 16 Secton 203 on 17 eir dr gt 18 Utlities 19 ae eed omen 20 G Getewey 21 State Returns Chapter 4 General Data Entry 4 11 Section 6166 Election chon Th S echon ris 1 275 000 00 720 000 0D 3300 000 0D x General Information Payment Method Business Interests 19288 00 S755 107 IP OD 45 250 00 105 000 00 455 00 97 000 00 20 600 00 123 375 00 134 000 00 61 527 55 54 538 28 153 251 27 6581375 202 82 0 amp 56 265 00 49 725 00 146 33 50 075 00 311 48 WARNING If you make either of the first two elections the first principal andi payment is due 9 months after death and
87. e the anstracti ns on The reverse side of Schedule E Schedule F Real estate that is part of a sole proprietorship should be shown on Real estate that is inchuded in lhe grass estate under secti n 2035 2038 2037 of 21 38 should be shown on Schedule GG inler qiero giri praese siesar iei Pi rores 12 Residue Inform 13 State Death T Print 14 Miscellaneou 15 Fom 706 8 16 Sanction 20 29 17 Section 6366 El EN Lilies 13 6 20 GE 21 Site Faumel The item number column informs you that you are entering item 3 on Schedule A 5 03 Word Processor The cursor initially appears in the word processor field for the item s description GEM706 has two word processors that that you use to enter lengthy descriptions Directly below the description there are two buttons Click WP or type F11 to access the full word processor File Utilities Preferences Mele Data Entry Schedule Ac hem 2 Beneficiaries 3 Preparer end E 4 5 Elections b Gianeral and Ta 7 Gift Tex Retuma B Section 2I 324 B 9 Sector 6166 Eb VO beretanod Meu 11 mamanda Cha 12 Residue Ini n 13 State Death Tas Prini 14 Miscellaneous 15 Form 706 15 Section 20329808 17 Section 6166 E ay Utilities 13 6 2 GE 21 State PFietuma For a discussion of the features see 1 09 1 17 of the GEM706 manual Enter a brief description of a 400 acre farm that might appear as follows 45 Chapter 5 Schedules 5 0
88. ed apie Mi Cian i JOD ed beens Jang P0 u cComsqerLtu mpeg c quu rig RUP Gu gescuss ges B ame ERU ERREUR MEE E LE Mess Fedi Depcadurnkgni fe uini ences ai r c Sa page P ong TE E Te UK RD RUE Web mp pep opem rar do a pap Camar s td BIG EEDER Pa Me A GREG dana CAT DR Te Tee Baas TL ad cain amicum pis b emai ge ba dSn Hom reg d a DADOS de g Pa doin ard wie me Q5 DTE sitae ars pe Hi irm adit c eine grids mala jiasi SOCA dab imin i imi E E Canis nu p F4 RCW U p OR Rum ups s pr E QA LU EU Tena ga CE RF E Dy Tb Cz Nx Mc e PG PES cd ens MPH Bans ILLI all en Ea tg RIPORCT ind T Bim ee snam iras impo ism minui ipis iaia ina SCTE ST CARD a HIR Sed ences Cras acgaccmem uy SS LS deep remo Loy 22020222 che lead Ai LIT ME pute Rpa Sp priiske Eno UC Web e ee gare Ej newy per dn riii tie mtm LII i pp E mers ec EERTE o Tma vemi iman PRA Rl MM mus t E Ml Sh Seret acta aC OL bM a A TTA FX Epic RITGEeD F gete A eb D pb XO DICTeR Rep RU CRAS 0fupE e Eecp ESTER wa uer rcm GEM706 retains this setting until you again change it m To send the form to your printer click in the print preview menu bar GEM706 displays a printer options window where you can select the pages you desire to print and the number of copies 62 Chapter 6 Printing 10 04 Section 6166 gt You must always review Form 706 carefully to determine that all of the information has been entered correctly that t
89. en GEM706 displays the amount of life insurance which you indicated passed to the spouse on Schedule D the amount of annuities which you indicated passed to the spouse on Schedule I and the amount of qualified joint interests listed on Schedule E Part 1 together with any interests listed on Part 2 Schedule E for which the spouse was a surviving joint tenant The data fields at the bottom of the screen permit you to enter information relating to other preresiduary gifts that the spouse received GEM706 uses this information only in connection with the residue calculation These data fields are discussed in more detail below Click 83 fo return to the beneficiary selection window and select Susan T Smith the decedent s daughter 28 Chapter 4 General Data Entry 4 05 Beneficiaries Se Federal Estate Tax Returns 2011k Estate of John P Seith File Uter Preferences Help Fem 7065 Page 1 Dena Erry Fem 705 Page 2 1 Decadent infomation 2 Banehciames Beneficiary Informatio heal ol Suchen TE 1 580 DOCLOU i Raisin General Information Residual Gits and Apportionment Buster on Section 31 720 000 00 5 Eloctons Enter the folowing beneficsary information Name SIDA mi Address 5122 Mangold 107 50200 E 46 25000 6 General and Tax Aal 7 Cit Tax Reta sr 8 Sechon 20324 Electit iral 105 000 00 3 Section bTb5 Election 55 f 10 Interreleted Marta D City Norman State OK Jp T3072 sr on n 11 Insertion Chanak
90. en you edit an existing data file GEM706 displays a split screen with the Main Menu on the left and the schedule tree on the right s Federal Eslate F i File Utilities Preferences Dena Entry 1 Decedenit information 2 Benehciames 3 Pre pant and E state Poequectentetiun 4 Exaculorg 5 Electing amp Genaral and Tax Related intonation T Gift Tere Future 8 Socbon 232A Election 3 Section 6166 Election 10 Inherreteted Marital Ded 11 Intense Cheb Dno Fem dlk Page 1 Scheda A Food E ibd Schedule 4 7 S echo ZILA Vasto Schedule B Stacks ard Borads L B Schedule D lripur ncoe onthe Decadent Li Schedule E Part 1 Qualfesd Jost Inbereahy Schedule E Part 2 Al Othe Jeera Interests iche F Miecelueeon Paty hiha i Tiansders Quang Daescefleni s Lie Schedule H Foret of ipani 12 Residue Infosmation z h 3 Schedule Anraatiet 13 Stole Death Tax intorrfapor T Palas icm Schedule Part amp Fursa Expenses SohedualeJ Part D Admirirtrahon Expenzez 14 Miscellaneous Pap 15 Form 705 16 Section 203 j a Se 17 Section 766 Election gt Schedule K Past 1 Dabit ol ha Deccdeni 18 Suppa i e Schedule K Past 2 Moilgages amd Liens Udilies ut Schedule L Pat 1 Net Lopes During Adminsit anon x ore Soheduls L Pat z Ligenses or Property Hot buban t Clit 18 Geli on Schedule M Bequests ec lo Sung Spore 20 GE Caire Preliminar ripenalic 21 Siete Returns OTIP Pacer A
91. endages in the smaller word processor field located above the item description field GEM706 prints the header on the schedule before the description GEM706 associates the item number and the fair market values with the item description rather than the header Assume that the decedent owned 46 Chapter 5 Schedules 5 07 Transfer Item to Schedule M the farm as tenant in common with his brother Type Shift Tab or click in the header box and enter the following header gt Federal Estate Tax Returns 2011 Estate of John P Smith Fe Umites Preferences lel Schedule Ac serm Data Eritry it 1 Decadent Into FB Akl Appeercdage 2 Benelicinries lm E n 234 M TS Sen 00 pina SCHEDULE A Real Estate T0000 5 Elacions For jomi owed property thal must be disclosed on Schedule E see lhe matnechons on lhe reverse side of Schedule E B General and T Real estate that is part of a sole proprietorship should be shown on Schedule F Ses ge Real estate that vs inchaded in the gross estate under sechon 2035 2035 2037 or 2038 should be shown on Schedule G 4S SA Real estate that is included in the gross estate under section 2041 should be shown on Schedule H Section 2 wou elect section 20324 valuabon vou must complete Schedule amp and Schedule A 1 3 Sechon 6156 Een Altemati Altemata Value a date Tor 5c DO m 7 Gift Tz Fuertum 11 armand Cha T Lo 43472500 18 Supe nato Linie s s o
92. es deletes information when you move an item from one schedule to another In addition the schedule may have additional questions not found on the previous schedule or the width allowed for the item description may differ You should always review an item after you have moved it to a new schedule to ensure that you have answered all the questions correctly and that the item s description 1s properly formatted You can copy items and appendages using the same feature GEM706 permits you to copy assets on and between Schedules A through I and deductions on and between Schedules J through L In addition you can copy items on Schedules M and O and copy items from an asset schedule to Schedule M If you copy an item GEM706 also copies its appendages You can use this feature to copy assets which qualify for the marital deduction to Schedule M However the two items are not linked and if you change the fair market value of the assets GEM706 does NOT make a corresponding change to the item on Schedule M 59 Chapter 6 Printing 6 01 Introduction This chapter describes GEM706 s various print options Besides printing Form 706 and supporting documents GEM706 prints informational listings a checklist of documents that you should attach to Form 706 and documents to support elections made pursuant to IRC 2032A and 6166 10 02 Miscellaneous Reports Select option 14 on the Main Menu to view the miscellaneous reports that aid in the preparation of
93. g 5 Elactong amp Genaral and Tax Related T7 Gift Tere Future B Sechon 20324 Election E 9 Sacton 6166 Election i 12 Residus Indormnation f 1 sa Siete Death Tex Informal enn and installation El 51 02 Initializing 15 Porm 708 an Estate Dara 16 Section 203 File 17 Section 6766 on E n 03 Cursor 18 Suppi Federal Estate Tax Returns 2010 E 91 08 Taxpayer Numbers E 1 09 Word commas e 3614 i dien Debita LL Alium marai Deap an parmomed mir ms COPYTUEN Ast ot iri E Maat ot ined rib dts bo or ee ee ee The table of contents shows in the left bar You can click on any section to access it directly You can also search for key words by using the Find field Click to close the active window and return to the Main Menu 3 05 Preferences Click Preferences on the menu bar and GEM706 displays Spelling Dena Ertry LE 0 Fem ME Page 2 1 Decadent information Foam I Page 3 2 Benehciers Schedis d Asal Eais E Schedule A 1 Secon HIA Vakai A i a oem D Stacia and Dar E Elections Schedule C Mortgages Motes and Cath Y Schedule D letursnes onthe Decedent s Li amp General and Tax Related Information Schedule E Part 1 jubere i 7 Gif Tex Rehsme Schedule E Part 2 All Oihe Jori Inis B Simcbon 2032A Elechon Srhedue F Muia 3 Seceon 6166 Election Perrin miei 10 Interrelated Martial Ded Schade G Voie Dg Dende Lis 11 inona Chesiteiblo Cro 12 Residue Information E 13 Sie Death T
94. h Lax in addibon to amounl aviomabcally computed indicate whether calculation involves primary or secondary state rates Iv Primary Secondary 1 interest ran shinee hem arenas sr cd cheek cloth Chapter 4 General Data Entry 4 03 Residue Information on Vib 1 580 UO Meder dT C20 DOCL DO 107 MOE 46 250 0 105 000 00 amp 55 D Si DUCI EXE 2o EXER LXI 123 372 00 To DUC OX EE 54 538 20 153 251 27 E5013 75 ALS BHL Uh DE 265 DI DAT aud Vt T3 eet LXI oF oo 43 525 00 145 X 5075 00 311 40 date Uni Mizo AX RES D rm 15 53 15 344 4 105 000 OU 215 25 Hus 19 7006 T5 DIDO OO ste 12 31 In 83 06 you indicated that the Primary state is a decoupled state that imposes a tax equal to the repealed federal credit for state death taxes Above you indicated that the decedent died in the primary state Click or type F9 to return to the Main Menu 4 03 Residue Information GEM706 computes the residue of the estate and an intervivos trust automatically making adjustments to reflect changes in assets and liabilities included on Form 706 When entering information with respect to the amount which each beneficiary received for purposes of completing the beneficiary table on page 2 Form 706 you can indicate that a beneficiary received a percent of the residue See 4 05 In addition you can value items passing to the surviving spouse on Schedule M and to charity on Schedule
95. he calculation is correct and that it satisfies the filing requirements for your estate You can also click T to create a PDF file which you can electronically transfer to the executors beneficiaries and other interested parties If you elect to create a PDF file you must enter the file name and location You can also elect to print the return to a Word or Excel file This permits you to make necessary minor changes with those programs However you should take care not to make any changes that would alter the tax calculation Click i to return to the Main Menu 10 04 Section 6166 Select option 17 on the Main Menu to print the documents required to perfect the election to defer estate taxes attributable to closely held business interests Federal Estate Tax Returns 2011 Estate of John P Sm F e Uthtes Preferences Help Form 706 Page 1 Dota Entry Form 706 Page 2 1 Decedent Information Form 706 Page 3 2 Beneficiaries Schedule A Real Estate Prepore alive 1 320 acre lam located in Muscatine County lowa more Iparticulydly described as follows The south hall of Section 15 R 1 275 000 00 ae r ond Estote Represo 2 160 acre lam located im Cady County lona more parheubwiy deserted a lollwr The notheas qaxter on Sechon 31 730 000 00 i 3 400 acre lam located imn Muscle Courty lowa mare parculyty deserted as folows The west hall and the northeves 3 900 000 00 5 Elections Schedule A1 Sechon ABA Valuabon 6 General and Tax Rel
96. ilities Preferences Help Data Entry 1 Decedent information 2 Beneficianes General information Tax Related information State Tax Deducbon ll Sechon 16 y 3 Proper ond Esto Rop ae Nae 3 Evecutors z Bid the row 3 300 ODIO OD 5 Elections For purposes of completing line 3b page 1 Form 706 remit icti and Use amount computed by GEM706 based on mformation entered m opbon 13 on Main Menu ex Returns r 8 Section 2032A Election Use amounts automatically returned from state modules 9 Section 6166 Election 10 interrelated Marfal Deduct 465 280 00 11 interrelated Chamabie Ded 12 Residue Informebon ES 13 State Death Tex Information 2060000 DUT and 12 12288 00 LE 107 5i 0D 15 Form 706 54 538 28 16 Secton 203 on 153 251 27 1 Section S166 o 6581375 18 5 200 206 Uslitie v 56 265 00 dae Oe 4972500 13 6 Goteway 146 33 20 G Getewey 05 01 2013 5007500 21 State Returns 311 48 32 568 00 283532 1567 15344 74 10000 00 21535 a see owe Print AN 123 375 00 14 Miscellaneous SS T po F8 Add Appendage If you use the state death taxes computed by GEM706 and not a state module to complete line 3b page 1 Form 706 the manner in which GEM706 completes that line depends on whether the state imposes an estate or inheritance tax Ifthe state imposes an estate tax GEM706 enters on line 3b the sum of 1 the state estate tax computed in accordance with your entries under the State Tax Information
97. k El to the right of the data field to search for the decedent s data file Click to return to the Main Menu 4 11 Section 6166 Election To perfect the election under IRC 6166 you must first affirmatively answer the relevant question in the Elections program division See 4 08 You must then enter all qualified business interests as assets on the appropriate schedules and indicate at the bottom of the asset window that the item qualifies for IRC 6166 deferral See 5 09 You must then select option 9 on the Main Menu to proceed to the Section 6166 Election program division and enter the additional data relating to the election GEM706 prepares the Notice of Election in accordance with Treas Reg 20 6166 1 b and an analysis of the threshold requirement set forth in IRC 6166 a 1 both of which must be filed with the estate tax return Contained in the Notice of Election is a payment schedule based on the facts existing as of the date of filing Form 706 To print these reports select option 17 on the Main Menu See 10 44 Remember that you have already made the IRC 6166 election See 4 08 Select option 9 on the Main Menu to enter information relating to the election 39 Chapter 4 General Data Entry 4 11 Section 6166 Election Form 706 Page 2 1 Decedent Information Fem 706 Page 3 2 Benehiciones 5 Schedule A Real Estate 3 Preparer end Estate Rog 6166 Elan E 4 Executors 5 Elections General Information Payment
98. l Other Property ehid 0 Chaiable Pubit and Sirdar idis aral Buti Schedule F Crai f Foreman Dash T ass Schedule Credit for T aer on Fra Trance Seheduals f Generation Skee Transier Tac Desst Ska Froe True zo Thee P Pot D5T Fueron Bieri The Main Menu guides you through data entry printing and utilities Although you can enter all of the information required to complete Form 706 directly in GEM706 it is helpful for training purposes to transfer information from the estate s accounting that has already been completed Select option 19 on the Main Menu by clicking that option or typing 19 21 1 Decadent infomation 2 Benehciames 3 Pre pant and E state Porgaesentetiun 4 Exeeutors 5 Elochons amp Genaral and Tax Related informacion 7 Gift Tere Putus 8 Souchon 20924 Bledian 3 Saceon 6166 Election 10 Interreiated Martel Ded 11 Intornelatos Chewable Do 12 Residue Inigrmatian EE irl in Miscellaneous o_o 15 Form 70 16 Sactian Z 17 Section 6966 18 Supp M i Galrway 20 GEMTI O Gateway 21 Stede Returns Form 706 Page 1 Fem ME Page 2 Fern ME Page 3 Schach A Find E chal Schedule AT mao JA V abor Schedule B Stacks and Dorii Schedule C Mortgages Motes and Cath Schedule D leprae on he D cecent Lite Schedule E Past 1 Qualified Joint Interests Double value of community property assets and lrabibties transiened Double value of assets transferred
99. lnted Marital Dieductio 11 Interreleted Charitable Dedu 12 Residus Indomnation 13 State Death Tax inlormapon E Miscellaneous EAN 15 Form 75 16 Section 203 17 Section 6966 a 18 Su 5 40 000 00 Vy 5 90 000 00 E os 140 000 00 20 GEM US Gateway Dr 21 Siete Fietums 1 540 000 00 38 800 00 640 106 300 00 6 00 You should enter a descriptive name for the state tax at the top of the window You must also indicate whether the state imposes a tax at the estate level similar to the federal estate tax estate or at the beneficiary level such as an inheritance tax Many states impose a tax based on the repealed federal credit for state death taxes See IRC 2011 repealed effective 2005 For purposes of that calculation you were permitted to reduce the federal taxable estate by an additional 60 000 If you select Yes in answer to the first question GEM706 automatically reduces the taxable estate by 60 000 If you select Yes in answer to the second question GEM706 completes the estate table in accordance with the table used to compute the repealed federal credit for state death taxes If your state does not impose an estate tax based on the federal credit for state death taxes you should answer these two questions negatively and enter the estate tax table You can also indicate that your state imposes an inheritance tax in which case you can enter separate tax brackets for each benefi
100. ly the alternate valuation date is six months after the decedent s death If you click Default GEM706 computes this date based on the decedent s date of death If you later make a change in the decedent s date of death GEM706 makes a corresponding change in the alternate valuation date If the item was distributed sold exchanged or otherwise disposed of within six months after the decedent s death you must remove the check in the default field and enter the alternate valuation date In some instances a single item may have more than one alternate valuation date In this case check the Various check box and GEM706 will print Various as the date for that item Type Tab or Enter to advance to the alternate value data field and enter 3 900 000 as the item s alternate value 5 07 Transfer Item to Schedule M You can transfer this item to Schedule M by checking the first box in the lower portion of the window If you want the item s full description to appear on Schedule M check the second check box However GEM706 does not include an item s header and appendages on Schedule M even though the value of the Schedule M item includes the value of its appendages GEM706 also assumes that it should appear on Part 2 Schedule M If the item qualifies for the marital deduction as the result of a QTIP election you must move the item to Part 1 Schedule M See 5 16 If you do not check the second box GEM706 automatically generates the following descrip
101. n 6166 Election 10 interrelated Marital Deduc 11 Interreimed Chartable Ded 12 Residue Informetion 13 State Death Tax Info mio Print 14 Miscellaneous Repo 15 Form 706 16 Secton 203 on 17 Section 6966 Elott 18 Su Utlites date OY 03 01 2013 Total In this example the Ohio modules has computed the state estate tax to be 138 956 07 That amount plus the amount entered in the data field directly above will appear on line 3b GEM706 only uses the amounts returned from state modules to complete line 3b Form 706 You must still enter sufficient information in option 13 on the Main Menu to permit GEM706 to calculate the state death tax to complete the beneficiary table on page 2 Form 706 if you have indicated that a percentage of state death taxes are payable from a beneficiary s share See 84 02 and 84 05 Click to return to the Main Menu 4 10 Gift Tax Returns Click option 7 on the Main Menu to enter information with respect to the decedent s gift tax returns Ge Federal Estate Tax Returns 2011 Estate of John Fe Unites Preference Help fom Ub Page 1 EE TREES bal Acsimeri TO Fas 0E halo Section 16 1 590 000 EI 4 Executions Ana dace Br tu i quwieron Section 3 720 000 00 5 Elections Codi kor g anea on pe 1077 cile bee FONG fo b Gaieneral ard Tax Ralted Incem 7 Gift Tex Retums B Section 20524 Election 3 Sechon 6166 Elector VO beitesretatod Meribel bio Dedi 107 0200
102. nder the General Information tab and That portion of the residue which the beneficiary received entered under the Residual Gifts and Apportionment tab oe ee From this total GEM706 subtracts the tax payable from this beneficiary s share as described on the Residual Gifts and Apportionment tab In the above window you can indicate that a percent of the federal estate and GST tax is payable from Susan s share Since you indicated that this state imposes a tax at the estate level see 3 06 and 4 02 you can also indicate that a portion of the state estate tax is payable from her share At the bottom of the window you can enter all other transfer taxes payable from Susan s share In this example you can leave all of the data fields blank Click to return to the beneficiary selection window GP Federal Estate Tax Returns 2011 Estate of John P Smitt Foe Unies Preference Help Form SU Page 1 Data Entry from UB Page amp 1 Be cedant Indormoaton p 2 Beneficiaries _ 3 Preparer end E siete Mepresentaine 4 Execulons 5 Elections a 7 Gift Tex Retuma Lr ipe of Lehr Fm and dco 46250000 B Section 20024 Election Magy L Sert Mandal Trad 106 000 00 9 Sechon 6156 Elector 455 00 10 eitermoletodi Marital Deduct re E ah 11 betemodeted Chantable Onde 1223756 HI 12 Residus Information i n 19483000 13 State Death Tas Informigtioh m E asama T5420 2 Ihe suh Fal o Sechon T
103. neral and Taw F bb of the common stock ol T Gift Tez Future 8 Socbon 232A Elo 3 Sacin 6166 Elect 10 Insgerelted Maris 11 Intirrmidiested Chiti 12 Residue Inicematic 13 State Death Tax Prnt 14 Miscellaneous Fig 15 Form 70 16 Section 20224 Ee 17 Section 6966 Elect 18 amp T Llitias 1s aeg os am 20 GE 21 Siete Fietums To enter a new macro click Add at the bottom of the window 16 Chapter 3 Data Input Menus and Options 3 06 Utilities Ge Federal Estate Tax Returns 2011 Estate of John P Sith File tibns Preferences Help Dena Erny 1 Decadent Informa 2 Benehciames 3 Prepari and E sts 4 Execulorg 5 Elactong amp Genaral and Tax FP T7 Gift Tee Putus 8 Scion 20324 Ell 3 Section b 166 Elad 10 Interreteted Marr 11 Intirrideted Chanig 12 Residus Iniomnatic 13 State Death Tax Print j 14 Miscellaneous Fia 15 Farm 708 i 16 Section 20224 EM 17 Section 6766 Eleti 18 Suppi Uses I c 20 GE C Bn 21 Siete Retums You must first identify the macro by entering a code at the top of the window and then enter the text You can recall and use macros by clicking Macro below the word processor window or typing F10 After you select a macro GEM706 inserts the text into the word processor beginning at the cursor s current location Although you can enter new macros as you are entering descriptions you must return to Utilities on the Menu bar
104. no interest accrues at 2 rate Does estate elect benefts of 6166 b 7 with respect to certain partnership interests and non readiy traded stocks Does estate elect benefits of 6166 b 8 with respect to holding company stock Will estate defer estate Lax for the maximum penod Number of installment payments of principal Be Date of first installment payment of pnncipal LC Will estate defer the maamum amount of estate tax Amount of deferred tax Hp 32 586 00 233532 1567 15344 74 0000 00 21535 ew es 4 100 000 calice ol deposi mih Fest Nobel Bark Cet number 27392336 Irimie tate 4 10S Mohaty date 12 3 1 Intewest on above deem accrued as of decederi s death L3 e nnnm odes se cd dos th Feeds Chus DIE Pu coh Eos Wise die Tt Radosascsli asia D OUS 04 8 od A rn F7 Add ltem In most instances the first two questions will be answered negatively For more information see 87 04 of the GEM706 manual If you indicate that the estate elects to defer estate tax for the maximum period GEM706 assumes that the tax will be paid in ten annual installments the first installment coming due five years after the original due date of the federal estate tax return On the first four anniversaries of the original due date the estate makes only interest payments If you indicate that the estate will not defer tax for the maximum period you must enter the date of the first installment payment of principal
105. ns Section 6166 Election Chapter 5 Schedules Introduction Schedule A Word Processor Page Break 5 05 5 06 5 07 5 08 5 09 5 10 5 11 85 12 5 13 85 14 5 15 5 16 6 01 Header Date of Death and Alternate Values Transfer Item to Schedule M Community Property 2032A and 6166 Elections Schedule Print Previews CUSIP and Unit Values Schedules B E F G and I Beneficiary Designations Schedules D and I Joint Interests Schedule E Part 2 Schedule J Schedule M Moving and Copying Items Chapter 6 Printing Introduction 10 02 Miscellaneous Reports 810 03 Form 706 810 04 Section 6166 Chapter 1 Introduction GEM706 is designed to prepare Form 706 the Federal Estate and Generation Skipping Transfer Tax Return GEM706 prepares all of the accompanying schedules and many of the required attachments In this training you will become familiar with basic GEMS software functionality Additionally you will look at the major steps in preparing an estate tax return including transferring assets from an accounting making an election to defer taxes on closely held business interests pursuant to IRC 6166 and creating an optimum marital deduction bequest on Schedule M In addition to this Training Guide there are several other ways to obtain assistance 1 You should consult the GEM706 user manual as a reference guide You can find the manual by opening an estate tax file and clicking
106. option 5 on the Main Menu 33 Chapter 4 General Data Entry 4 09 General and Tax Related Information Ge Federal Estate Tax Returns 2011 Estate of John P Smath Fae Unites Preferences Help Foam Ub Page 1 Chats Entry Fo 7E Page 2 1 Decederi Informatian Form ME Page 3 2 Banelicinrias Schedule amp Asal E stain Esate Repr dalve 1 S20 sere ium besed in Muscahne noni lew mont pabeubsry descibed as baker The south hal ol Sechon 16 1 590 ODE OT ne pine bee T 2 TED acre iam located im Cady Courdp kaa mone paila descsibed as fol The northeast quater on echon 3 720 000 00 Y Schedles A Section 20325 Valus Elections unn Schedule B Stocks and Bonds 6 General and Tex Fulad Informaon 1 Belwouf Cop Uni value 26 22 Number of units 4 100 Exchange NYSE 7 Gift Te Fieturmns 2 Fod Mate Company Und value 18 50 Humber of unit 2 500 Exchange NYSE B Section 20324 Election 3 Sechon 6156 Electon 10 ivereisted Mantel Deducigg l 11 lewrolatad Charitable Ded c No Will estate elect altermate valuation date as provided in amp 20327 12 Residue Inf nmati n s Mo Will esiste He a protective election ss provided in 520327 1219900 13 State Death Tax Inforgtichy nin one Ma Will asiste specially value real property as provided in 2032 ES l ane er ee A s C No Will estate make woodlands election as provided in 2032A eX 13 hera 1 Dc No Will estate fle a protective election as provided in 5203
107. osa Urban enews Interact rate 5 DS Interact due date DEAN and 12 01 Maturity date DEAD inter s on abo bond accnaed aq of decedent s death 1 6 Gateway 16 50 000 wisconzin Hesh F acity Intensat vate 5 25 Intareat due dase 2 01 and QAO Maturity date C1013 20 GEMTITS Ganwe 1 Interest on above bond scenasd at ol decedens death 21 State Ritums E icaid C Matgsger Notes and Cah Fait Matin Barik HOD checking account Acct rumba 161 1332 Cen Shale Bc ogres ake tani ced nuam Shee 1 Intel on Aer denn el at d imm nd t daah Fodbebly Rechte fusci Sand ruamber 4 Cid SOO essit of especial vals Fas Hara Bank List mune SSE Inienesl sabe 4 TIER Mabry iate 17 731 1G ECI 1 Rien nri abeo iem accrued aad nf decedens deat 1535 575 000 cerihe aee of deponi vari Lenis Diae Bank Len riumber 5724 X 48 mime aee T1037 Huty die DS ONA o meea on above fer accrued as oi decedent s death an F m F To return to the Main Menu without deleting the gift information you have already entered click Cancel Click OK to proceed and GEM706 requests the GEM709 data file Fe Unies Preferences ele fom Ub Page 1 Data Entry Fem WE Page 2 1 Decadent Infomation Form US Page 3 2 Beneficiaries Scheduie A Asal Estate 7 33 aue iam besed im Musesiine County lows mone pavioulaly eesceibesd as hieer The south hall of Seelen 16 1 28 000 D d Exeouiors 2 TE acre bom loc nhed in Cely Cond Lows more partus descelbesd as holes The rerihe
108. osing the number in parentheses For example you can enter 1 125 00 by typing any of the following strings 1 125 1 125 00 1125 1 125 00 1125 1125 00 Percentages GEM706 computes all percentages accurate to six decimal places In other words the fraction one third is expressed as 33 3333 percent You cannot enter a negative number or an amount greater than 100 per cent It is not necessary to enter either the percent sign or the decimal point If you do not enter a decimal point GEM706 places the decimal point immediately to the right of the last digit that you entered Dates If GEM706 requests a date you may only enter the numbers 0 through 9 and the character GEM706 displays all dates in the following format mm dd yyyy You may enter all four digits of the year or only the last two digits If you only enter two digits GEM706 completes the year by adding 20 to the beginning 3 05 Menu Bar There are several important program features and options found on the menu bar at the top of the Main Menu 3 04 Help Click Help on the menu bar and then click GEM706 Manual to access the extensive manual 13 Chapter 3 Data Input Menus and Options 3 05 Preferences File Utities Preferences Helpi redd A View Document Comment Forms Teek Advanced Windmw Help Dena E Create Combine Collaheeate Secure Forms Multmedia Commer IEE e de e Los d i PEE 2 Benehciames 3 Propan and Estete Pug 4 Exacular
109. ott Booster Club AR MIGOLI PM GEMS 9 Arvest herking FAR A TEIADUB 3086 PIA GEMS ATXFAR VIMI APM GEMS Dikip 5 ATX Test 2010 FAR 200 2001 11 220 amp M AMS T Cap trans FAR 1L I0 20010 53727 AME GEMS d T Cap trans Cher F AF 1241 2000441PM MS Lbranes 7 Lap Dans agli FAR 11 4 2010 3 13 FM GEMIS A 7 Cap haniLot FAR 11 4 3200429 PM GEMS i FlelLEAR 12 58 2010 2 53 AM BEMS T FnalAR LEGO ele ARA GEMS Genenclmpont FAR 1M1 2 7480857A M GEMS Hain GilletPublishingLLC FAR SM 1042 oh AM3 T imbit FAR IMATAM GEMS 7 3 m Fle name ces Berne Club FAR Open co Cnm z eee As you enter the new name you must leave FET extension Type Enter or click anywhere on the screen to save the changes 10 Chapter 3 Data Input Menus and Options 3 01 Introduction This chapter describes basic input procedures and provides a general overview of many of the options on the GEM706 Main Menu Return to the Administrator screen click GEM706 and select the data file that you initialized earlier from the Recent Files window GEM706 displays the Main Menu in a split screen format File Utilities Preferences Help Den Erin Fam TUE Page 2 1 Decadent infomation Pom UE Page 3 Schuh dn A Haalt bd 2 Benehocames 3 Prep ner and E state Pusgrasentetrue Schedule AT Secton AEDA Vakai n ru Schedule B packs ard Ponds E Electone Scheids E Mortgages Mess and Cath hi Schedule 0 Bepur
110. r or reversionary mterests ars provided in 561637 13 6 Gaterwen C Yes N Wil estate elect OUT of OTF treabreent of anmilies as proaded in 820558 by T Cu 20 GEMM Ganwe 21 State Fietums n ners ori abere Exon accrue at of decem de a daki C Mortgages Notes amd Cath T Fie Manna Bake OPA checks account Juil putter 1E1127 2 Dena She Bak corey marked soiuri ucl name 55 324 56523 To iniga en aber dem acer ad ol decedens death 3 Fulelby Broke Asean Acl camber 54 ES 100 000 emilen of dapak wih Fesi Nahonal Bank Cen number 27206 Inieresi ee amp TE Maury die 12701 104000 OO Inienest ce above Rem accnaed aq of decedens death 253 5 T8000 certhcate of deposit wth Central Piste Barb Cert number 57543044 Iniesesk iate LS Haury date 11730 PO I m t FT di Bem FS Dielsin Ihem Fa Add Appendage The IRC 6166 is handled the same way as the special use valuation election under IRC 2032A You make the election on the above screen you indicate those items on the schedule tree that qualify for the election see 5 09 and then you select the dedicated option on the Main Menu option 8 for IRC 2032A and option 9 for IRC 6166 to enter the remaining information Click to return to the Main Menu 4 09 General and Tax Related Information Option 6 on the Main Menu asks miscellaneous questions necessary to complete the form and compute the tax Select option 6 on the Main Menu 34 Chapter 4 General
111. re not the same enter the item s correct alternate values The number of units for a bond is equal to its face value divided by 100 In other words a bond with a face value of 50 000 represents 500 units If you enter the unit value and number of units GEM706 computes and displays the item s fair market value at the date of death and at the alternate valuation date You can override GEM706 s calculation of the fair market value by entering the desired amount in the value column If you later change either the unit value or the number of units GEM706 recomputes the fair market value and displays the new result only if the fair market value was equal to the unit value times the number of units prior to the change Since stocks bonds and or partnership interests may be listed on Schedules F G and I the data input for those schedules resemble Schedule B Click OK to return to the Main Menu 5 12 Beneficiary Designations Schedules D and I You are required to include life insurance on the decedent s life on Schedule D and annuities on Schedule I both of which often have beneficiary designations To add the first item to Schedule D click Schedule D and click Add Item or type F7 5 Chapter 5 Schedules 5 12 Beneficiary Designations Schedules D and I 9 Federal Estate Tax Returns 2011 Estate of John P Senith ESSE F ge Utebties Preferenz Ss Dieta Erin 124 880 00 1 Diacedant into Al E27 85 2 Baenefimnas een A 1
112. result you do not have to make an additional entry in the Beneficiaries program division to account for the receipt of the insurance proceeds GEM706 also uses this information to compute the estate s residue See 4 03 If you identify the beneficiaries the item is treated as passing to those beneficiaries and reduces the amount available for distribution to the residuary beneficiaries If you fail to identify the beneficiaries GEM706 does not reduce the estate s residue by the amount of the insurance If you fail to associate a beneficiary with the policy on Schedule D you must advance to the Beneficiaries program division to enter that amount as a preresiduary gift to reflect the correct total in the beneficiary table See 4 03 Assume that there was a 100 000 life insurance policy on the decedent s life payable to the decedent s wife You might complete the screen as follows gt Federal Estate Tax Returns 2U11 Estate ol John P Seth l l AA File Uter Preference Heig Schedule Dx ier EN Data Entry s Soo 27 000 00 1 Decadent ini AKI 2 Beneficiaries Hee x dual ur SCHEDULE D Insurance on the Decedent s Life 61 827 5 5 El um You must list all policies on the life of the decedant and attach a Form 712 for each policy 54 2 i warren mE em 153 251 27 6 General and Ta l Description bn di 013 75 7 Gift Tox Rete 203 B2 06 8 Secton 20324 E 56 265 000 5 Sncton 6166 El z 19 200 00 10 Interrelated Mar Uaa
113. s the target location and displays the following Ge Federal Estate Tax Returns 2011 turo iL Uo lo oe Foam 706 Page Data Entry For 706 Page 2 1 Decedent Information Form 705 Page 3 2 Benehooanes Schedule A Rex E tiae 3 Prepare end Estate Representative 4 Executors ows more procul descnbed ss lokot The south hal of Sechon Th 1275 000 OD 2 16D are low owe more parboulady descsibed as loos The northeast quarter on Sechon 2 000 CD 3 20D acre Vae Owe more parboulady descnbed as lokis The west hall and the mow 3 300 000 OD 5 Elections Schedule A1 Section 2039A Valuation 6 General and Tex Related Information Schedule B Slocks and Boris 7 Git Tax Returns 1 Belbwuh Cop Unt value 25 22 Number of unis amp 100 Exchange NYSE 107 p 00 8 Section 2032A Election 2 Feed Motos Company Unt value 18 50 Number of units 2 500 Exchange NYSE amp 5 290 CD 9 Section 6166 Election 3 MNIConmoruwbon Unt value 52 50 Number of units 2000 Exchange NYSE 105 000 OD 10 Interrelated Marital Deduction FS 11 interrelated Charitable Deduthan 12 Residue Intormabon 13 State Death Tax Information Print 14 Miscellaneous Reports 15 Form 706 16 Secton 203 KEN chon Wd 17 Section 6966 Elotton lt i 3 D and 12 01 Maturity diste 12 01 2013 18 Supportigg Forms n q amp Intereat rate SEX Interest due date 06 01 and 1 Unlities 19 GEMA nA Goteway Inteseet on above bond accrued as of Gecedert s daah
114. se s interest If you only inventoried the decedent s interest in the community assets you should instruct GEM706 to double the value of all community assets and debts When GEM706 subsequently subtracts out the surviving spouse s interest on the various schedules the taxable estate will only reflect the decedent s interest The same principles apply with respect to qualified joint interests transferred to Schedule E Part 1 If the decedent and his or her spouse were the only joint tenants IRC 2040 b provides that only one half of the property is included in the decedent s gross estate If you included the joint tenancy property in the inventory at only one half of its fair market fair you can instruct GEM706 to double the value when it is transferred to Schedule E Part1 After you have answered these questions click Proceed or type F8 Se Federal Estate Tax Returns 2U11 of John P Smith File Uteeties Preferences Help Dena Erny 1 Decadent infarmag 2 Benehciames 3 Preparar and E sts 4 Execularg Hii n enaral and Tex F 7 Gift Te Fiatums Many L Sms 8 Section 2032A EM Susan Zarsth 3 Section 6166 Elect Lawrence W Smith 10 Interretated Martis 11 Int rriodetod Chanig 12 Residus Indomnatic 13 State Death Tax Fred Unrversaty of Oklahoma Foundation Mary L Semih Mantal Trust 14 Miscellaneous Fi 1h Farm 7l 16 Section 20324 17 Section 6966 Elect 18 Su The tabs at the top of the
115. sing Data Files 2 07 Editing File Names 2 06 Creating Data File Copies Back Ups You can also create a copy of a data file in the Open window GEM706 stores all of the information relating to each estate tax return in a separate file that you create when you initialize a new file If you right click on a file name a menu appears that permits you to copy delete e mail or rename a file To create a duplicate of an existing file simply right click on the file name ur Fs L GillettPublishing com Organise Mew Polder Yr Favceit Alene Date modified de User Files 2 27 2011 10852 AM enable T Alrni FFT Suu 22208 PRI Donna E Select Decurments T Hack PR Jahn P 3 T it i a 7 jonathan Scan for Venkses Videos A 8 F Rudolph Open with Sally T K Restore previous versiant Labret Open IMS Computer Sarah Ft Send te iL osit Susan T amp 2 ovi RW Dave DE Audio Cut Tayler ft Copy Then iy Hetwork Traning Create shegteut Wilken T Delete d Birat Filename Donald T Aloo Properties Select Copy and then place the cursor at the end of your file list right click again and select Paste to create a copy of the file in the same folder 2 07 Editing File Names To edit a name after you have created the file right click on a file name and select Rename Gillatt Publishing com zi Date modified Type By ile
116. sncs on ree D csdeni Life b Gamer and Tak Related Inlamamon 5 hehe E Part 1 Qhusbified Joint Interests 7 Gift Tex Fietums S chess E Part 2 All Oih dori Interests B Schon ZLUTZ E echan Dcha F Hielem Pty 3 Sacton BTb5 Election 10 Interretetedi Martel Deduction 11 Introd Charitable Crchaffi n l 12 Residue Information a 7 e a c 13 Stote Death Tax Inlormiefor Seed 3 Tiansders Dung Descefleni s Lie Prai Fit Schedule J Part amp Furia Expenses 14 Miscellaneous Flepote Schecde J Part D ddrainiptestion Expenses 15 Form 706 sh 16 Section 203 Eldcton 17 Section 6966 Election Schedule K Past 1 Dabit of Hs Cececkerd 1 amp Supporting Forms n Schedule K Part 2 Morigsges and Liens tA v Scheddel Pat 1 Net Lovie Dung Admnstaion 19 gekut Gelgwoy Scheids L Fan 2 Denes en Pregernty Hot bubat to Clit iler Schedule M Bequest ec lo Sunni paue 70 GEMM Gateway 2 Sete Returns DTIP Property Al tea Property Scheda D C haioakbbe Pubs and Sordin Gifts arel Harpit Em Schedule F Crai Ii Foreman Dash T anes Schedule U Credit for T aei on Fron Transat Sehedals f Genaiation Skee Transies Tac Desst Gkaga Froes True thee PI Poi 1 ASTI vamni Fsconcksion The panel on the left is the Main Menu The schedule tree on the right reflects the items on the various schedules GEM706 complies with general Windows conventions making it easy to use The majority of GEM706 s windows ar
117. sts the fair market value of the passive assets attributable to the decedent s ownership interest in the Business interest The deferral of estate tax 1s not available for passive assets See IRC 6166 b 9 This data field is most relevant with respect to corporations listed on Schedule B and proprietorships and partnerships listed on Schedule F GEM706 subtracts the amount of passive assets from the value of the closely held business to determine whether the threshold requirements are satisfied and to calculate the maximum amount of federal estate tax which the estate can defer For the current example just leave these data fields blank Click fo return to the Main Menu 42 Chapter 5 Schedules 5 01 Introduction This chapter describes the process of entering information on the various schedules GEM706 automatically assigns an item number to each item description You can add a header to an item which will appear before the item description on the applicable schedule GEM706 also permits you to create appendages to items Data entry for an appendage generally is the same as items but appendages do not have item numbers The schedule tree appears as follows y Federal Estate Tax Fe Unies Preferences Help Data Entry Fem 70 Page 2 1 D acediani Informatan Fam 0b Page 3 2 Beneficiaries Schedule A Beal Estate 1 37 oem ium ineated im Muscatine County lew mons pabou deme as Pellewer The south hal of Sechon T
118. t If less than the full amount is included in the decedent s gross estate under the consideration furnished test of IRC 2040 a and if you have entered the unit values and number of units you must override the calculation of the item s fair market value by entering only the includible amount in the fair market value data field If the item 1s not a stock or bond you should leave the unit value and number of units data fields blank and enter only the item s includible fair market value 54 Chapter 5 Schedules 5 14 Schedule J At the bottom of the description column GEM706 permits you to identify the cotenants Each cotenant is a beneficiary of the estate and must be included in the beneficiary table See 4 05 GEM706 also uses this information to complete the beneficiary table on page 2 Form 706 GEM706 treats each cotenant as receiving an amount equal to the includible fair market value of the item divided by the number of surviving cotenants and prints that amount together with other gifts they may have received as identified on Schedules D and I and in the Beneficiaries program division in the beneficiary table on page 2 Form 706 See 2 04 2 05 Asa result you do not have to make an additional entry in the Beneficiaries program division to account for a cotenant s receipt of joint property GEM706 also uses this information to compute the estate s residue See 84 03 If you identify the cotenants the item is treated as passing
119. t to claims on Schedule L GEM706 displays the value of life insurance entered on Schedule D and annuities entered on Schedule I for which you identified the beneficiaries See 5 12 If you identify the beneficiaries when you enter an item on Schedule D or I that item is treated as passing to those beneficiaries and reduces the amount available for distribution to the residuary beneficiaries GEM706 only reduces the residue by that percentage of the fair market value that you associated with beneficiaries In other words if you fail to enter the beneficiaries for an item listed on Schedule D or I GEM706 assume that it 1s payable to the estate GEM706 displays the value of qualified joint interests entered on Part 1 Schedule E and the value of other joint interests entered on Part 2 for which you identified the surviving cotenants If you identify the cotenants for joint interests listed on Part 2 Schedule E the item 1s treated as passing to those beneficiaries and reduces the amount available for distribution to the residuary beneficiaries If you fail to enter the cotenants for an item listed on Part 2 GEM706 does not reduce the residue by the amount of that item The next entry includes the preresiduary gifts entered in the Beneficiaries program division which you indicated should be applied against the estate s residue and the amount passing to unascertainable beneficiaries which you indicated should be applied against the estate s residue See 4
120. tab in option 13 on the Main Menu and 2 the fixed amount of state transfer tax that you entered under the Primary Secondary Rates tab in option 13 on the Main Menu Ifthe state imposes an inheritance tax GEM706 enters on line 3b the sum of 1 the inheritance tax imposes on each beneficiary computed in accordance with your entries under the State Tax Information Tab in option 13 on the Main Menu and 2 the fixed amount of state transfer tax which you entered under the Primary Secondary Rates tab in option 13 on the Main Menu If you have installed a state module you can direct GEM706 to use the amount of state tax computed by the module to complete line 3b page 1 Form 706 Click the second radio button in the above window 36 Chapter 4 General Data Entry 4 10 Gift Tax Returns GP Federal Estate Tax Returns 2011 Estate of John P Sm F e Utilities Preferences Help Foam 706 Page 1 Data Entry 1 Decedent Information PA Estate Roprod Senet information Tax Related information State Tax Deduction lH Secton 16 1 275 00000 on Sechon 720000 OD Sarai For purposes of completing line 3b page 1 Form 706 hd the nevi 3 900 000 00 erate eid i C Use amount computed by GEM706 based on iformation entered in option 13 on Main Menu Gi Tex Rretuens G Use amounts automatically returned from state modules Enter amount of state death taxes in addition to amounts specified below Ohio PAN and 12 8 Section 2032A Election 9 Sectio
121. tanley Lande and Coulter for attorney fees 5 Payment to executor lor evecutor leet Schedule K Part 1 Debts of the Decedent 3 Fest National Dark motgsge on decedent s esdence 2 Final bito Wion Telephone Company for telephone services 3 Final bil to Muscatine Power and water for electscal service 4 Schedule K Pat 2 Mortgages and Dent Schedule L Part 1 Net Lotes During Adeinictiahon Schedule L Part 2 Expenses on Property Not Subyect to Clare Perray F T 1 Schede D ltem 1 Schedule O Charitable Public and Seis Gits and Bequests Prirrmriwey mdomason Schedule P Cedi hor Formy Dasih T aceet Schedule Q Comi koc Tax on Pro Trailers Schedule R Geemiator Skappang Trier Tax Denct Skips From a Trost Pirhirmiry riam Schedule R Pat 1 GST Exemption Reconcehon F5 Delete Ite Note that the life insurance policy that you have already transferred to Schedule M appears on Part 2 as indicated above Some schedules including Schedule M have questions that appear before the item information Double click Preliminary Information to access the questions on Schedule M 56 Chapter 5 Schedules 5 15 Schedule M 9 Federal Estate Tax Returns 2011 Estate of John P Smith F e Utilities Preferences Help 1 Miscelarmou household tursibings 1500000 Data Entry 2 Famequpmen 120 000 00 1 Decedent information 3 2004 Ford F150 Tauck 12000 00 gt Beneficiaries 4 2005 Chenot M sibus 10000 00 3 Preparer and Estat
122. te whether GEM706 should use the short or long description on Schedule M Since you did not transfer the full description GEM706 automatically generates the following description on Schedule M Item 1 on Schedule D If you transfer the full description GEM706 repeats the item s full description on Schedule M when it is printed The schedule tree always displays the reference to the item and schedule Click OK to return to the Main Menu and then advance to Schedule M by using the slide bar to the right of the schedule tree or by typing M 213 Fodera Est ux Furby File Utilities Preferences Help Dieta Ente 1 Decedant intonation 2 Banehrimnaz 3 Propan and E stab Popperian 4 Execut r 5 Flectorns 5 General and Tex Purletend intarneaton T Git Tex Fuetum 8 Secton 20324 Election 3 Socton B 165 Election 10 Inerretated Marital Dedu 11 interrelated Charitable Dedi 12 Ponesidhue Indeametinn 13 Siete Death Tex iniombalion Enni 14 Miscellaneous Aopare 15 Farm 706 18 LOS RU 17 Section B66 Eletian 21 Sun Fetus ERTETTAUMEETTITS 2 Echedule G Tranrafen Dung Decedenis Life Schedule H Peer of Appin mud Lx E LP FERIIS T E isl Sede J Fan B Poder aon epee Pannen to maniey Lande and Coole lor anomey leet 5 Pamei bo execuhor lor executor eer Seeds E Pant 1 Debis of tha Decedent i Fai Mone Bk moto on decedens ridenee 2 Fina bl in win Telephones Lompsng I belephorne senes 3 ual bal
123. ting Fa Although GEM706 displays the item the data fields are inactive You must return to Schedule D to make any changes Click OK to return to the Main Menu 5 13 Joint Interests Schedule E Part 2 You must list joint interests that are not qualified joint interests on Part 2 Schedule E To add the first item click Schedule E Part 2 and click Add Item or type F7 9 Federal Estate Tax Returns 2011 Estate of John P Smit fae Utilities Preferences iH m 2535 a 70 000 00 VB Data Entry z 1 Decedent Infc 2 Benehcones nsi Cop mna SCHEDULE E Part 2 All Other Joint Interests l 5 Elections if you elect section 2032A valuation you must complete Schedule E and Schedule A 1 6 General and Te i rn Arc 15000 00 8 Section 2032A 120 000 00 9 Section 6166 El 12 000 00 10 Interrelated 10 000 00 11 Interreimed CI 12 Residue Infor 13 State Death Ta Print 14 Miscellaneou 15 Form 706 Smh Susan T Seth Lawrence W Smith Ureversdy of Oklahoma Foundahon Burner rterest Since stocks and bonds can be listed on Schedule E the input is similar to the input for Schedule B See 5 11 You must also enter the includible percentage the percentage of the total value of the item that is included in the gross estate The fair market value of the item as of the date of death and if applicable the alternate valuation date should only take into account the decedent s includible interes
124. tion on Schedule M Item 3 on Schedule A In this example do not check the transfer to Schedule M check box 47 Chapter 5 Schedules 5 10 Schedule Print Previews 5 08 Community Property The next check box in the lower portion of the window requests whether this item was owned by the decedent and the surviving spouse as community property This question is active only if you indicated in the General and Tax Related Information program division that the decedent owned community property See 84 09 If an asset is community property you should enter its full value on the above screen and GEM706 includes the asset on Schedule A at that value However GEM706 automatically generates an additional entry which removes the surviving spouse s ownership interest The entry will appear as an appendage after each item of community property or as an item at the end of each schedule You indicate your choice in the General and Tax Related Information program division For more information see 4 18 of the GEM706 manual 5 09 2032A and 6166 Elections The remaining check boxes at the bottom of the screen relate to the election to specially value real estate as provided in IRC 2032A and to defer the payment of federal estate tax attributable to business interests as provided in IRC 6166 Since you indicated in option 5 on the Main Menu that the estate will be making the IRC 6166 election that check box is active Check the 6166 box to indi
125. to edit existing macros Click Cancel to return to the first window and then click or type F9 to return to the Main Menu State Death Tax GEM706 permits you to enter sufficient information to compute state death taxes in most situations This information is utilized in connection with the calculation of the deduction for state death taxes shown on line 3b page 1 Form 706 see 3 03 of the GEM706 manual and the amounts passing to beneficiaries that appear in the table on page 2 Form 706 see 2 03 2 05 of the GEM706 manual It is also necessary to enter information with respect to the state death taxes to perform interrelated calculations involving marital and charitable deductions see Chapter 5 of the GEM706 manual Again select Utilities on the menu bar and then select State Death Tax 0O ll a Sabe Death Tax Primary Lo Interest Calculatzons L a zi cao ZULLZA V buon Erber Edd Preparers EVP Pe nq interlace Stabe Medube Authenzaban 3 Sector blbe Election 10 Interretated Martel Ded 11 Intoenelanos Chewable Dro 12 Residue Information d Stole Death Tax informato E Miscellaneous A 15 Form 75 16 Section 203 17 Section 966 18 ps y Schedule B Spoke and Fords Schedule C Mortgages Nabss and Cath Schedule DI lriparsnos onthe Decadent Life Schedule E Past 1 Cialis Joint Interesat Tehed E Past 2 All Oih care isea z mr F Metam Pop Schede 6 Tes Dar Drones ale
126. to file this retum 107 50 00 i M 46 250 00 10 interrelated Marital De Yes C No all expenses debts mortgages and bens shown on item 16 of the 105 000 00 TEE Recapitulation allowable as a deduction on item 17 of the Recapitulation 455 00 Residuo w Enter amount of allowable deductons NT 37 000 00 13 State Doath Tex intorningogy Pa 20 600 00 Print A Ji DUE MN CM S 129 375 00 Subtract spouse s interest as appendage after zem 134 200 00 14 Miscellaneous Repo C Subtract spouse s combined interests as last item on each schedule 61 807 55 15 Form 706 Enter bnet descnpbon of spouse s interest to be used on schedules 54 538 28 16 Secton 203 on Suniving spouse s interest in above kerd 15325127 17 Section 6966 Elsta 6581375 18 200 602 06 56 265 00 Unilitie v dae Qi 4972500 19 oea omen 146 33 20 G Getewey 05 01 2013 5007500 21 State Returns 311 48 32 586 00 253532 1567 1544 74 10000 00 253 a we ens F8 Add Appendage In this example GEM706 will subtract out the surviving spouse s interest as an unnumbered appendage using for the description Surviving spouse s interest in above item Unclick the community property check box On line 3b page 1 Form 706 you must report the deduction for state death taxes To enter information to permit GEM706 to compute this amount click on the State Tax Deduction tab GP Federal Estate Tax Returns 2011 Estate of John P Smit Fee Ut
127. tur Preferences Help Fem 705 Page 2 1 Decedenit Infarmasan 2 Benehciames 3 Preparar and E steno Fuoprosentat 4 Exacularg 5 Elactong h amp General and Tex Related Informal 5 107 50200 E 7 Gif Ter Peete pe a 4650 0 8 Secton 20324 Elechon L Seth Hari 105 000 n0 3 Sacin 6166 Election a55 X1 10 IMerreleted Mariel Deduchpn a 37 000 on 11 Internoleted Chesitable Cedy htin M 12 Residus Indormnation 154 060 00 13 State Death Tex information ae K 54 538 28 T z Y 154351 14 Miscellaneous Repar ER 81378 15 Farm 7 5 or EE S ee 06 16 Section 203 P lp dete TRANG 15 2655 OU 17 Section 536b on E B buberesl dom data OAM ans T 19 28800 18 8 5h55 DEM u 1 and 12 01 Mana dave OG 4372500 146 31 18 aeg os TV Hansip dae ATIII SUITS 20 GEMM Gateway 31148 21 State Return pri The south hall of Sechon 16 1220 0000 The nothest quieter on Sector 31 720 000 OU Er dri mma 15 57 1534474 siam 10S Mana date 12 31 100 000 00 215305 atie LIIE Matuni dans 11 30 06 73000 00 aA D j In the beneficiary table on page 2 you are directed to aggregate the gifts to all beneficiaries who receive less than 5 000 The first entry in the above window permits you to enter this amount To add a new beneficiary click Add Bene and complete the beneficiary window To edit an existing beneficiary highlight that beneficiary and click Edit Bene Mary L Smith was the surviving spouse Select her
128. ty that must be disckesmd on Schedule E see the instructions for Schedule E First National Bank NOW checking account 10 01 2011 32 586 00 32 586 00 Acct number 161 133 2 Central State Bank money market account 10 01 2011 26 335 92 26 335 92 Acct number 5672 0988 Interest on above item accrued as of decedent s death 10 01 2011 15 87 15 867 Fidelity Brokerage Account 10 01 2011 15 344 74 15 344 74 Acct number 54 069584 100 000 certificate of deposit with First National Bank 10 01 2011 110 000 00 100 000 00 Cert number 2738293 6 Interest rate 4 1096 Maturity date 12 31 2007 Interest on above item accrued as of decedent s death 10 01 2011 75 000 certificate of deposit with Central State Bank 10 01 2011 Cert number 5784 3044 Interest rate 3 99 Maturity date 11 30 06 Interest on above item accrued as of decedent s death 10 01 2011 Note that the appendage to item 2 reflecting the accrued interest resembles an item in all respects other than the missing item number Click to return to the Main Menu 5 11 CUSIP and Unit Values Schedules B E F G and I Select item 1 on Schedule B by double clicking on that item 50 Chapter 5 Schedules 5 12 Beneficiary Designations Schedules D and I Ge Federal Estate Tax Returns 2011 Estate of John P Senit File Utbties Preferences lem Dieta Erin 1 Decadent inion 2 Baneticianas 3 Propan and E 4 Execul r amp 5 Elections 5 General and Ta
129. uire more information than is included in the summary in which case you should discard GEM706 s summary and prepare the necessary documentation manually The final way to value an item on Schedule M is to indicate that it is an optimum marital bequest which is the smallest amount required to eliminate the federal estate tax To accurately compute the optimum marital deduction you should first complete all portions of Form 706 You should also include on Schedule M all bequests qualifying for the marital deduction other than the formula bequest that is based on the optimum marital deduction GEM706 computes the optimum marital deduction whenever it performs a tax calculation and assigns that value to the selected item If you later change any portion of Form 706 GEM706 automatically makes appropriate changes to Schedule M For more information see 4 34 of the GEM706 manual Click Cancel to return to the Main Menu without adding an additional marital deduction item 5 16 Moving and Copying Items You can move items and appendages on the schedule tree GEM706 permits you to move assets on and between Schedules A through I and deductions on and between Schedules J through L In addition you can move items on Schedules M and O If you move an item GEM706 also moves its appendages Left click on item 14 Schedule B and while continuing to depress the mouse button drag it to item 1 Schedule B When you release the left mouse button GEM706 highlight
130. urnty number Date of birth Orie of death aren County state and ZIF ar foreign v liek country od decedent s domicile ear established Tesla C Yes C No Sr Dn on Retired C Yes C Ho apa f E 123 375 Checupeston or inner occupeltian 154 000 00 Cizenship at death 61 f 27 55 54 53 20 14 Micellar BU 15325127 15 Form 708 C Widowed 8541375 16 Section zl Indicate decanzed spouse s put 17 Section Name 18298 00 18 Supporti Socelsecuiynumbe DE 57 55 Usities Doile of death Ld 4372500 18 GEMMA Single 146 21 20 GENTIS d C Legally seperated Eco 21 Stee Pe i Divorced indicat date decree became final Od 32 Ses On Wilh nier parcit to probalt or isses escimenmstredteon 1567 Hama and location af court 15344 74 ravenna igi 1000000 l l 53 Death certificate number and issuing suthority a 7500000 aq T i J All of the questions from various portions of the return relating to the decedent appear in the above window For training purposes you do not have to complete all of the data fields However you should indicate that the decedent was married and click or type F9 to return to the Main Menu 4 05 Beneficiaries On page 2 Form 706 you must supply specific information with regard to the estate s beneficiaries including how much each beneficiary received Select option 2 Beneficiaries and GEM706 displays those beneficiaries transferred from the accounting file S011 Estabe of John P Smith File Uti
131. wa mene particularly deseaba as folowr The northeast quarter on Section 3 720 000 00 im E Genaral and Tax Fialated Information um S 7 Gift Tax Retums B8 Section 20324 Election 3 Section 6166 Election Should this executor be listed on page 1 as the one to 10 teretated Mantal Dieductio be contacted by the IRS 11 karitate Charitable Deducir l 12 Residue Infomation F Yes C M ls executor a benefician 13 State Death Tax Informatio se 1A Interest due date OBAT and 12 And 12 01 Matarty date DEAD DI Hanri date 501 2013 2 Gents Siete Bark sucre marked sori Aii number SATE T Interest on Abre der screed at of descent e 3 Fubeliy Ecke fusce Macc ruber HORSA 4 XM DOO ciini of degit wath Feel Haoni Bonk Less number OPS Inienesl sabs 4 TIG Malunby die 12 511 7 Interest ce abere ibem accnaed az oit decedens deat mo 8 FRO onii ol deponi vate Cental Date Bank Cert number 5754 3744 mimet ate USE Maturity dale TA Interest on above iiem accrued ar oi decedent s death Note that you cannot change Mary s information in this window You must return to the Beneficiaries program division to make changes Click to return to the fiduciary selection window You also can reorder the executors the same way you reorder beneficiaries See 4 05 Click to return to the Main Menu 4 08 Elections Option 5 on the Main Menu permits you to make the various elections found on Form 706 Select
132. x informato A Firkin Income Fund Chace B Unit value 2 77 Number ol urit 16 26 68 amp 1 827 55 Vanguard S amp P SOD edes Furr Uni value 10 42 Number ol unit 5 2246 54 538 20 AN 10 Transamerica Index Fund Unit value 83 Number of units 17 046 86 153251 27 E 1 Fideliy Conta Fund Unit value 4625 Number of units 1 423 EEEE 12 bazisni Und waus p5 27 Humba of uns 17127 2 E Pera ES 3 5000 US Treasury Iris ale S ES Interesl due date ir and 12 0 Mah Pre 3 2500 ecnan i da a 4 irri irm ere LEE a bete chee dob GLATT sre T Lae 1h 5 a yis 1 anan an karda di aah men E y z 15 504000 Carter Laka howe Uther Ferereral beterest cate DODY Interact due date O60 and 12 01 Hanay dee OR 42 725 00 1 ibanai on above bond accnasd at of decedens death 146 32 J Getewey z T6 350000 witcondin Heath Facit nbiet 5 25 Interest due date DATI ad ODI Hahay date DAT2UT 3 5075 00 a GE Gateway 1 interest on above bond accrued ar of decedent s death qm 21 Siete Returns Schedule C Morhgages Mohes and Cath 1 Fast National Bank HA checking scenunt Ace numbes 161 1332 X 5 ON 2 enha Shas Bank fraus make aciari Ae runes SETAS 7635 3 To btheteel cu shore bem acted an ol dcm end cdd 15 53 3 Fudeliy Prokeiage Acor Aveo number 4 G4 1534474 A AMO DOC certificate of deposit with Fani Nana Bank Cert mambe 27355250246 braes cate dk Mawaiy dae 12 31 100000 heteres on abire item accrued ai of decedent s death i535 z 5 475000 cathe of depot with Cerial Stale Dank Cert

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