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Other Tax Issues of InterestEstate TaxEstate tax may apply to your taxable estate at your death. Your taxable estate is your gross estate less allowable deductions. Gross estate and taxable estate are explained in Publication 950. The Unified Credit to Estate Tax Basically, any unified credit not used to eliminate gift tax can be used to eliminate or reduce estate tax. However, to determine the unified credit used against the estate tax, you must complete Form 706. Filing an Estate Tax Return An estate tax return, Form 706, must be filed if the gross estate, plus any adjusted taxable gifts and specific gift tax exemption, is more than the filing requirement for the year of death. Adjusted taxable gifts is the total of the taxable gifts you made after 1976 that are not included in your gross estate. The specific gift tax exemption applies only to gifts made after September 8, 1976, and before 1977. Filing requirement. The following table lists the filing requirement for the estate of a decedent dying after 2003. Filing Year of Death Requirement: 2004 and 2005 ...................... 1,500,000 More information. If you think you will have an estate on which tax must be paid, or if your estate will have to file an estate tax return even if no tax will be due, see Form 706 and its instructions for more information. You (or your estate) may want to get a qualified estate tax professional to help with estate tax questions. Important References
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