Common questions about Filing 706 Returns in Lacerte Tax

Allocation ratios or amounts can be set up in Screen 34, Beneficiary Allocations by entering a percentage or dollar amount for each beneficiary. Once a ratio or dollar amount has been created, select the ratio number from the dropdown menu on the various asset screens. For instance, an asset assigned to 1 will flow directly to beneficiary number one. When assigned to Ratio 1, this asset will be allocated to the beneficiaries with entries in the field labeled Ratio #1, (.xxx) or dollar amount in Screen 34, Beneficiary Allocations. 

The surviving spouse should be set up in Screen 2, Beneficiary Information. Be sure to check the box Surviving Spouse?. Any assets assigned to that beneficiary will carry to Schedule M automatically and then be deducted from the taxable estate.

The QTIP election is made separately per beneficiary in Screen 2, Beneficiary Information by checking the box QTIP Election?. All assets assigned to this beneficiary will flow to Schedule M and be excluded from the taxable estate. If a ratio is used, the portion going to this beneficiary will be included as QTIP property. If there's a residual amount from the estate flowing to this beneficiary, it'll also be included in Schedule M.

Yes, by using the same methods referred to in Question 1.

Any item which is unassigned, either to a beneficiary or an allocation ratio, will wind up in the net residual of the estate. The residual of the estate before death taxes, federal estate taxes, state death taxes or federal GST taxes can be allocated to each beneficiary by percentage. Use Screen 34, Beneficiary Allocations to enter these percentages.

Descriptions entered on almost any schedule can be used as headers. Simply enter 1 in the field labeled Blank=item, 1=remark, 2=supplement. This creates a description, with no item number or dollar amount. Enter 2 in the same field to create a supplement, a line with a description and dollar amount but without an item number. A supplement can be used to enter interest and dividends related to the item preceding it.

Yes, you can move or copy properties within the same screen or move or copy properties to another input screen in the estate tax program. Use the Cut Property, Copy Property, and Paste Property commands in the Detail menu.

All taxable gifts from previous gift tax returns should be included. They need to be added to the taxable estate for the calculation of the total transfer tax. See Screen 32, Taxable Gift Worksheets and enter each prior year Form 709. The decedent will get a credit for any previous taxes paid.

First, beneficiaries must be entered in Screen 2, Beneficiary Information. Second, assets must be allocated to these beneficiaries as described in Question 1.

Enter a letter of co-tenant in the field labeled Letter of co-tenant to carry information to Part 2 of Schedule E. Note: The co-tenant information must be entered in Screen 14, Schedule E - Jointly Owned Property. Select Co-Tenant Name and Address from the Schedule E section on the left hand navigation window to enter the co-tenants.

You're able to type up to 3 letters of co-tenant (ex. ABC) in the same field for that asset. For more than 3 co-tenants you'd need to split the asset, and then re-assign next co-tenants.

You have to elect alternate valuation in Screen 7, Elections by Executor to have the alternate valuation amounts show on the schedules supporting Form 706.

Yes, an extension of time to pay the tax can be made on Form 4768. Use the field 1 = extension to pay granted, 2 = not granted, in Screen 8, Extensions, to indicate if this request for extension to pay has been granted.

For items with no alternate valuation amount entered, the federal income tax summary will print a zero.

Yes, the program looks at the decedent's social security number rather than the estate's federal identification number for rep access.

The client can simply enter the desired amount for each beneficiary in Screen 33, Beneficiary Bequests/Overrides. Note this will not complete the various supporting schedules required by the IRS; it will just get what the client wants on page 2 of the Form 706.

On Screen 34, Beneficiary Allocations, for each beneficiary, enter the Percentage of federal estate tax, Percentage of federal GST tax, and Percentage of state estate tax.