Preparing Form 706: The Federal Estate Tax Return

Author: Steven G. Siegel

Learn How to Prepare the Federal Estate Tax Return, Form 706
This webinar addresses the preparation of IRS Form 706, the U.S. Federal Estate Tax Return. This form is a complicated return to prepare, running more than 25 pages with more than 15 schedules.

Returns for 2021 must take into account additional wrinkles and complexities that must be mastered based on the Tax Cuts and Jobs Act of 2017 as well as recent changes in tax law. Most critically for your practice, you should be prepared to properly explain portability and document those conversations and resultant client decisions to avoid potential future problems when clients choose not to file a Form 706. Filing a 706 may be necessary even with the higher exemption from tax on estates under recent tax legislation, and the threat of future reductions in the exemption amount.

Publication Date: December 2021

Designed For
This course is essential for CPAs, enrolled agents, tax attorneys and other professionals who advise clients on tax, retirement and estate planning, and other wealth management matters.

Topics Covered

• Ascertaining Whether a Federal Estate Tax Return May Be Required and Other Post-Mortem Tax Planning
• Dealing with Form 706 and the Preliminary Decisions to Be Considered Early During Administration
• Filling Out Asset Schedules A through I of Form 706 Schedule A—Real Estate
• Special Use Valuation Election: Section 2032A
• Schedule B: Stocks and Bonds
• Schedule C: Mortgages, Notes and Cash
• Valuation: Discounting Mortgages and Notes
• Schedule D: Insurance on the Decedent's Life
• Schedule E: Jointly Owned Property
• All Other Joint Interests
• Schedule F: Other Miscellaneous Property
• Schedule G: Transfers During Decedent's Life
• Schedule I: Annuities
• Use of the Alternate Valuation Date
• Completing Deduction Schedules J through U
• Schedule J: Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims
• Schedule K: Debts of the Decedent, and Mortgages and Liens
• Schedule L: Net Losses During Administration and Expenses Incurred in Administrating Property Not Subject to Claims
• Expenses Incurred in Administering Property Not Subject to Claims
• Schedule M: Bequests, etc. to the Surviving Spouse
• Schedule O: Charitable, Public and Similar Gifts and Bequests
• Schedule P: Credit for Foreign Death Taxes
• Schedule Q: Credit for Estate Tax Paid on Prior Transfers
• Schedule R: Generation-Skipping Transfer Tax
• Schedule U: Qualified Conservation Easement Exclusion
• Completing the Return: Pages 1 through 3

Learning Objectives

• Recognize the basic concepts and issues of estate taxation
• Describe the practical implications of key estate tax changes and the impact on filing estate tax returns for 2021
• Describe the parts and schedules that make up the Form 706
• Identify how to determine estate tax liability
• Recognize the only action required to elect portability
• Differentiate the different schedules and how they apply to client scenarios
• Identify the 2021 estate tax return filing threshold
• Recognize the only action required to elect portability
• Identify which property should be reported on Schedule A
• Recognize which Schedule tax-exempt bonds should be reported on
• Recognize which schedule is used for listing mortgages and notes held in the decedent's sole name and cash on deposit in banks or on hand

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None