Form F706

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This topic contains 5 replies, has 2 voices, and was last updated by  Lilac 1 week, 3 days ago.

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  • #3943

    Lilac
    Participant

    If I don’t need to file estate tax ( the estate is way below California requirement) , do I still need to file F706 ?
    A friend told me I still need it because I have a step up cost basis on my investment but I think she is wrong.
    Thank you.

    #3944

    kaneohe
    Participant

    CA currently does not have an estate tax so there is no CA requirement although there is/was legislation to start. https://sd11.senate.ca.gov/news/20190326-senator-wiener-introduces-california-estate-tax-proposal-fund-programs-reducing-wealth

    Some recommend filing the 706 for portability reasons…….being able to
    use a spouse’s unused exemption.
    https://www.google.com/search?q=estate+tax+portability&oq=estate+tax+porta&aqs=chrome.0.0j69i57j0l4.5916j0j7&sourceid=chrome&ie=UTF-8

    Whether that is useful to you or not depends on your personal circumstances. Seems like valuation for step up cost basis could be documented in other ways.

    #4006

    Lilac
    Participant

    Thank you Kaneohe.
    Appreciate it.

    #4586

    Lilac
    Participant

    <<Whether that is useful to you or not depends on your personal circumstances. Seems like valuation for step up cost basis could be documented in other ways.>>

    Can Kaneohe or other experts here please tell me what is the other way to do it ? I don’t need to file for portability for form 706 which is due very soon ( 9 months )
    Is there a time limit to record the step up cost basis on stocks and house or do I have to do that if I am not selling them now ? Thank you so much in advance. Your help on answering this question is very much appreciated.

    #4588

    kaneohe
    Participant

    If you are talking about stocks/mutual funds, you should be able to find historical values on the internet. If you are concerned w/ real estate,you
    could have an appraisal done. Presumably these would be the values you put in the 706 if you filed that form. The 706 only documents the values but the values come from other sources so you could just keep records of the raw input data.

    #4592

    Lilac
    Participant

    Thank you so much Kaneohe for answering my question
    as the date of my husband’s passing for 9 months deadline to file 706 is in two more weeks.
    I am relieved now that I don’t necessary need to file 706 ( don’t need portability) and just keep the records myself of the step up cost basis on the stocks and real estate ( already done by broker and Appraiser). 🙏

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