Instructions for Form 706 (2014) Checklist
Form 706 is used by the executor of a United States citizen’s or resident’s estate to report the gross estate and compute any federal estate tax due for a 2014 date of death. It also applies when the generation-skipping transfer tax is triggered and when elections are needed, even if no estate tax liability is ultimately payable.
This checklist follows the 2014 instruction structure and emphasizes correct schedule placement, valuation support, and clean documentation. It also reflects the expectations for the portability election workflow, shaped by the American Taxpayer Relief Act of 2012 and related estate and gift tax rules.
Purpose and Filing Context for 2014 Estates
This guide is designed for decedents dying in 2014 and uses Form 706 schedules as the organizing framework for return preparation. It supports estate planning execution by focusing on valuation discipline, deduction categorization, and schedule completeness.
Form 706 is an estate tax return, not an income tax filing, and it operates under estate tax exemption and estate tax exclusion rules applicable to the 2014 year. When gift tax history exists, Form 709 must be reviewed because prior taxable gifts affect the estate tax exemption and portability calculation.
Ten-Step Checklist
Step 1: Confirm whether Form 706 is required
Determine whether the estate must file Form 706 using the IRS filing threshold test applicable to a 2014 death date, which considers the gross estate and other required components. Filing is not determined solely by gross estate size, because adjusted taxable gifts and other additions can change the result.
Also, determine whether a filing is needed to make a portability election, even if no estate tax is due. A timely and complete filing preserves the surviving spouse’s unused exclusion amount under the portability provision.
Step 2: Choose the valuation date
Default valuation uses fair market value on the date of death unless the executor elects alternate valuation under Form 706 rules. The chosen approach must be applied consistently throughout the gross estate schedules.
Alternate valuation generally uses values six months after death, but property disposed of within that period is valued on the disposition date. Records should identify valuation methods, appraisal dates, and any sale documentation supporting the selected valuation date.
Step 3: Identify and organize the gross estate
Compile all property interests includible in the gross estate, including real estate, marketable securities, business interests, annuities, life estates, and retained-interest transfers. Trust and beneficiary designations should be reviewed because they often determine whether property is includable.
Review Form 709 gift tax history and supporting schedules to confirm prior taxable gifts and any related election positions. This step supports the accurate computation of the estate tax exclusion and helps avoid misstatements in estate and gift tax reporting.
Step 4: Complete Schedule A — Real Estate
Use Schedule A to report all real property interests included in the gross estate, including residences, rental property, commercial holdings, and undivided interests. Each entry must clearly describe the property to identify it and support classification.
Report fair market value as of the selected valuation date and retain qualified appraisal support when appropriate. Common supporting records include deeds, evidence of ownership percentages, mortgage payoff statements, and comparable sales documentation.
Step 5: Complete Schedule B — Stocks and Bonds
Use Schedule B to report publicly traded securities and other reportable investment holdings included in the gross estate. Each listing should identify the issuer, security type, quantity, and valuation method used.
Valuation should follow IRS guidance for market quotations as reflected in the 2014 instructions.
Broker statements, pricing documentation, and corporate action records should support share counts and fair-market-value computations.
Step 6: Use correct schedules for cash, notes, insurance, and joint property
Schedule C is used for cash, bank accounts, mortgages payable to the decedent, and notes receivable, including documented debts owed to the estate. Entries should reflect fair market value and include supporting account statements and note terms.
Schedule D reports insurance on the decedent’s life and requires identification details and proceeds information even when includibility depends on incidents of ownership. Schedule E reports jointly owned property and requires supporting documentation for the includible portion.
Step 7: Complete Schedules F, G, H, and I, where applicable
Schedule F captures other miscellaneous property, such as tangible personal property, collectibles, vehicles, and items not properly reported elsewhere. Appraisals and contemporaneous evidence should support fair market value determinations for non-marketable assets.
Schedule G covers certain lifetime transfers included in the gross estate under the form’s framework rather than a simplified lookback concept. Schedule H addresses general powers of appointment, and Schedule I reports annuities, each requiring governing documents and valuation support.
Step 8: Compile deductions using the correct deduction schedules
Schedule J reports funeral expenses and administration expenses incurred in administering property subject to claims, supported by invoices and proof of payment. These entries should be itemized clearly to show how each cost relates to estate administration.
Schedule K reports debts, mortgages, and liens supported by creditor statements and enforceability documentation, while Schedule L reports losses and certain expenses for property not subject to claims. Schedule O reports charitable transfers eligible for deduction and requires documentation supporting the recipient's qualification and the transfer terms.
Step 9: Address GST where required
When transfers may trigger generation-skipping transfer tax, Schedule R is used to compute
GST tax payable by the estate under the 2014 rules. Schedule R-1 may also be required depending on the nature of the transfer and the GST reporting framework.
This step requires identifying direct skip transfers and verifying any GST exemption allocations tied to lifetime gifts reported on Form 709. Consistency between estate tax and GST computations helps avoid mismatches that create processing delays.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Execute, assemble, and file the return
Perform a final reconciliation to ensure schedules tie to the recapitulation and documentation supports each reported value and deduction. Confirm that the executor signs under penalties of perjury and that the required attachments are included.
For the 2014 instructions, Form 706 is filed with the Internal Revenue Service Center in
Cincinnati, Ohio, unless later procedural guidance changes the filing destination. Estate fiduciaries should retain proof of timely filing and a complete copy of the signed estate tax return package.
Notes on 2014 Form Context
The checklist does not rely on later-year structural changes to Form 706 schedules and focuses on correct schedule usage for the 2014 instructions. Common errors include misclassification of schedules and incomplete supporting documentation for valuation and deductions.
This workflow supports accurate tax filing and reduces estate tax liability disputes by keeping records organized and positions clearly supported. When a professional review is needed, coordination with an estate planner can help confirm elections and documentation sufficiency.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
