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Offer tutorials on instructions and examples of usage of the features. Currently going thru trial and error which so far has worked well
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How is portability elected?
To make a portability election, the decedent's estate must file IRS Form 706, which is the “United States Estate (and Generation-Skipping Transfer) Tax Return.” On that form, the estate can elect to transfer the DUE to the surviving spouse.
How long do you have to elect portability?
Note: On February 17, 2012, the IRS released Notice 2012-21, which provides that for certain estates, the portability election can be made within 15 months after the date of death even if the surviving spouse failed to timely file a Form 4768.
How do you elect portability of estate tax exemption?
In order to elect portability of the decedent's unused exclusion amount (deceased spousal unused exclusion (DUE) amount) for the benefit of the surviving spouse, the estate's representative must file an estate tax return (Form 706) and the return must be filed timely.
When Must Form 706 be filed electing portability?
Normally, Form 706 is due nine months from the date of death with a six-month automatic extension available. However, if the 706 is filed only to elect portability, it can be filed anytime on or before the second anniversary of decedent's death.
How does portability work estate tax?
So what does “portability” of the estate tax exemption mean? In simple terms, portability of the federal estate tax exemption between married couples comes into play if the first spouse dies and the value of the estate does not require the use of all the deceased spouse's federal exemption from estate taxes.
How do you elect portability on 706?
To make a portability election, the decedent's estate must file IRS Form 706, which is the “United States Estate (and Generation-Skipping Transfer) Tax Return.” On that form, the estate can elect to transfer the DUE to the surviving spouse.
How can we make portability election on 706?
According to the instructions, the election is made by the executor of the deceased spouse's estate. Form 706 must be filed to make the election, and even estates that would not otherwise be required to file Form 706 (generally because of the size of the estate) must file to make the election.
How does Estate Tax Portability work?
So what does “portability” of the estate tax exemption mean? In simple terms, portability of the federal estate tax exemption between married couples comes into play if the first spouse dies and the value of the estate does not require the use of all the deceased spouse's federal exemption from estate taxes.
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