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Video instructions and help with filling out and completing Form 706 vs. Form 706-na

Instructions and Help about Form 706 vs. Form 706-na

Everyone, my name is Jim Baker from Montanbaker Tax Consultants, and I just had an interesting case this week. A non-resident who owned a house in Florida passed away. And if you're not aware, there is an estate tax for non-residents. The exemption is only $60,000, whereas for residents and citizens of the US, it is $5 million. So, unless your estate and assets are worth over $5 million when you die, you don't have to file or pay anything. However, for non-residents, if you own a house in the US worth more than $60,000, and it's not held in any kind of entity, there is an estate tax to pay when you die. There should be some planning that goes into this before you buy the property and before you die. But regardless, we're going to pretend no planning was done, and I'm just going to go over some basics of the forms that you have to file and how the forms get filed. The 706 is the estate tax form. This is the 706 United States Generation Skipping Transfer Tax Return. It is the basic estate tax return for US citizens who have assets over $5 million. There are a lot of sub-schedules where you list all the details about real estate. This includes the 2032-A valuation agreements and evaluations. So, there are many sub-schedules and information to be provided. Now, let's talk about the 706-Na. This is the United States Estate Tax Return of a non-resident who is not a citizen of the US. This consists of two pages. And any supporting forms required from Part 3 of this form must be used. The software I've used, like Drake Software, doesn't have a 706-Na. Therefore, you have to prepare this and do the tax calculations manually, following the instructions in...