Instructions for Form IH-12, State Form 51492 "Indiana Inheritance Tax Return for a Non-resident Decedent" - Indiana

This document contains official instructions for Form IH-12, and State Form 51492. Both forms are released and collected by the Indiana Department of Revenue. An up-to-date fillable State Form 51492 (IH-12) is available for download through this link.

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Download Instructions for Form IH-12, State Form 51492 "Indiana Inheritance Tax Return for a Non-resident Decedent" - Indiana

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Instructions for Completing
Indiana Inheritance Tax Return for Nonresident Decedent
This form does not need to be completed for those individuals
dying after Dec. 31, 2012. For those individuals dying before
Transferee Classes, Exemptions, and Tax Rates
Jan. 1, 2013, this form may need to be completed.
Indiana’s Inheritance Tax is imposed on the transfer of ownership
interests of a decedent. The tax is based upon the value of ownership
interests transferred to each transferee and the relationship of the
Property Subject to Taxation
transferee to the decedent. The three classes of transferees have
Indiana’s Inheritance Tax is imposed on transfers of real property
different exemption amounts and graduated tax rates for each
and tangible personal property that is located within Indiana when
class.
the decedent/owner is not domiciled in Indiana. The transfer of
intangible property interests is not subject to tax for nonresidents.
For dates of death after July 1, 1997, but before Jan. 1, 2012, the
following classes and exemptions apply:
Who Must File
Surviving spouse and charitable organizations are 100% exempt.
The personal representative of the estate of an nonresident must file
1.
Class A
the Indiana Inheritance Tax Return for a Nonresident Decedent
Parents, children, grandparents, grandchildren, and other
(Form IH-12). If there is no personal representative, one of the
lineal ancestors and lineal descendants and persons legally
following must file: an heir, a trustee, a joint owner, or another
adopted before emancipation ...................................... $100,000
transferee. No filing is required if the total fair market value of the
*For deaths after June 30, 2004, stepchildren are Class A.
property interests transferred by the decedent to each transferee
*For adoptions completed before July 1, 2004, adopted
under a taxable transfer(s) is less than the exemption provided to
persons adopted after emancipation are Class A .
each transferee. Only one return should be filed per decedent.
2.
Class B
Brothers, sisters, lineal descendants of brothers or sisters,
When to Use This Form
daughters-in-law, and sons-in-law ............................. $500
Use this form only if the decedent was a not a resident of Indiana
Class C
3.
at the time of death. For a resident decedent, use Form IH-6 found
Anyone not listed above including but not limited to aunts,
at
www.in.gov/dor/3509.htm
or contact the Indiana Department
uncles, cousins, friends, nieces, and nephews by
of Revenue, Inheritance Tax, Indiana Government Center North,
marriage .......................................................................... $100
100 North Senate Ave., Room N248, Mail Stop #102, Indianapolis,
Indiana 46204, or call (317) 232-2154 for a copy of Form IH-6.
For dates of death after Dec. 31, 2011, the following classes and
exemptions apply:
When to File This Form
1.
Surviving spouse and charitable organizations are 100%
This form must be filed within 9 months of the date of death.
exempt.
If the IRS allows an extension to file a federal estate tax return
2.
Class A
(Form 706), the corresponding due date for filing Form IH-12 is
Parents, children, stepchildren, spouse, widow, widower
automatically extended for the same period of time. However, an
of a child or stepchild (sons-in-law or daughters-in-law),
extension will not stop the accrual of interest for late payment of
grandparents, grandchildren, other lineal ancestors and lineal
the tax.
descendants, and children adopted prior to emancipation
$250,000
Where to File This Form
Class B
3.
Form IH-12 must be filed with the Indiana Department of
Brothers, sisters, and lineal descendants of brothers or sisters
Revenue, Inheritance Tax, Indiana Government Center North,
(blood nieces and nephews) ......................................... $500
100 North Senate Ave., Room N248, Mail Stop #102, Indianapolis,
4.
Class C
Indiana 46204. Do not file Form IH-12 with an Indiana court
Anyone not listed above including but not limited to aunts,
having probate jurisdiction.
uncles, cousins, friends, nieces, and nephews by
marriage .......................................................................... $100
Payment
The nonresident inheritance tax must be paid to the Indiana
Department of Revenue, Inheritance Tax, Indiana Government
Center North, 100 North Senate Ave., Room N248, Mail Stop #102,
Indianapolis, Indiana, 46204. Payments made within 9 months of
decedent’s date of death receive a 5% discount. Payments made
more than 1 year after the date of death accrue interest at 10% per
year from the date of death until the date of the payment. If the
Department of Revenue determines that, due to an unavoidable
delay, the tax cannot be determined within 12 months, the
department may reduce the interest rate to 6%.
1
Instructions for Completing
Indiana Inheritance Tax Return for Nonresident Decedent
This form does not need to be completed for those individuals
dying after Dec. 31, 2012. For those individuals dying before
Transferee Classes, Exemptions, and Tax Rates
Jan. 1, 2013, this form may need to be completed.
Indiana’s Inheritance Tax is imposed on the transfer of ownership
interests of a decedent. The tax is based upon the value of ownership
interests transferred to each transferee and the relationship of the
Property Subject to Taxation
transferee to the decedent. The three classes of transferees have
Indiana’s Inheritance Tax is imposed on transfers of real property
different exemption amounts and graduated tax rates for each
and tangible personal property that is located within Indiana when
class.
the decedent/owner is not domiciled in Indiana. The transfer of
intangible property interests is not subject to tax for nonresidents.
For dates of death after July 1, 1997, but before Jan. 1, 2012, the
following classes and exemptions apply:
Who Must File
Surviving spouse and charitable organizations are 100% exempt.
The personal representative of the estate of an nonresident must file
1.
Class A
the Indiana Inheritance Tax Return for a Nonresident Decedent
Parents, children, grandparents, grandchildren, and other
(Form IH-12). If there is no personal representative, one of the
lineal ancestors and lineal descendants and persons legally
following must file: an heir, a trustee, a joint owner, or another
adopted before emancipation ...................................... $100,000
transferee. No filing is required if the total fair market value of the
*For deaths after June 30, 2004, stepchildren are Class A.
property interests transferred by the decedent to each transferee
*For adoptions completed before July 1, 2004, adopted
under a taxable transfer(s) is less than the exemption provided to
persons adopted after emancipation are Class A .
each transferee. Only one return should be filed per decedent.
2.
Class B
Brothers, sisters, lineal descendants of brothers or sisters,
When to Use This Form
daughters-in-law, and sons-in-law ............................. $500
Use this form only if the decedent was a not a resident of Indiana
Class C
3.
at the time of death. For a resident decedent, use Form IH-6 found
Anyone not listed above including but not limited to aunts,
at
www.in.gov/dor/3509.htm
or contact the Indiana Department
uncles, cousins, friends, nieces, and nephews by
of Revenue, Inheritance Tax, Indiana Government Center North,
marriage .......................................................................... $100
100 North Senate Ave., Room N248, Mail Stop #102, Indianapolis,
Indiana 46204, or call (317) 232-2154 for a copy of Form IH-6.
For dates of death after Dec. 31, 2011, the following classes and
exemptions apply:
When to File This Form
1.
Surviving spouse and charitable organizations are 100%
This form must be filed within 9 months of the date of death.
exempt.
If the IRS allows an extension to file a federal estate tax return
2.
Class A
(Form 706), the corresponding due date for filing Form IH-12 is
Parents, children, stepchildren, spouse, widow, widower
automatically extended for the same period of time. However, an
of a child or stepchild (sons-in-law or daughters-in-law),
extension will not stop the accrual of interest for late payment of
grandparents, grandchildren, other lineal ancestors and lineal
the tax.
descendants, and children adopted prior to emancipation
$250,000
Where to File This Form
Class B
3.
Form IH-12 must be filed with the Indiana Department of
Brothers, sisters, and lineal descendants of brothers or sisters
Revenue, Inheritance Tax, Indiana Government Center North,
(blood nieces and nephews) ......................................... $500
100 North Senate Ave., Room N248, Mail Stop #102, Indianapolis,
4.
Class C
Indiana 46204. Do not file Form IH-12 with an Indiana court
Anyone not listed above including but not limited to aunts,
having probate jurisdiction.
uncles, cousins, friends, nieces, and nephews by
marriage .......................................................................... $100
Payment
The nonresident inheritance tax must be paid to the Indiana
Department of Revenue, Inheritance Tax, Indiana Government
Center North, 100 North Senate Ave., Room N248, Mail Stop #102,
Indianapolis, Indiana, 46204. Payments made within 9 months of
decedent’s date of death receive a 5% discount. Payments made
more than 1 year after the date of death accrue interest at 10% per
year from the date of death until the date of the payment. If the
Department of Revenue determines that, due to an unavoidable
delay, the tax cannot be determined within 12 months, the
department may reduce the interest rate to 6%.
1
The inheritance tax rates for each class are:
Even if no U.S. Estate Tax Return (Form 706) is required to be
filed, you must check the appropriate box in item 11. Even if you
Class A
file a Form 706 with the IRS, you are still required to file a copy
with the Indiana Department of Revenue.
Net Taxable Value of
Inheritance Tax
Property Interests
Schedule A, Real Estate
Transferred
List every parcel of Indiana real property in which the decedent
$25,000 or less
1% of net taxable value
had any right, title, or interest at the time of death and that was
Over $25,000 but not over
$250 plus 2% of net taxable
transferred at death by will or by intestate succession. Include real
$50,000
value over $25,000
property that the decedent was buying on contract at the time
Over $50,000 but not over
$750 plus 3% of net taxable
of death. Do not include real property held jointly with rights of
$200,000
value over $50,000
survivorship with one or more persons, real property held by the
entireties, real property held in a trust, or real property that the
Over $200,000 but not over
$5,250 plus 4% of net taxable
decedent was selling on contract on this page because it will be
$300,000
value over $200,000
reported on Schedule C.
Over $300,000 but not over
$9,250 plus 5% of net taxable
$500,000
value over $300,000
Describe the property in enough detail so that it can be identified
Over $500,000 but not over
$19,250 plus 6% of net taxable
for valuation. Example: If the will refers to the property as “the
$700,000
value over $500,000
Smith Farm,” that land should be listed as “the Smith Farm”
followed by its legal description on Schedule A. If the real property
Over $700,000 but not over
$31,250 plus 7% of net taxable
is transferred in two or more parcels to different transferees, each
$1,000,000
value over $700,000
parcel should be separately valued on this schedule. To assist in
Over $1,000,000 but not over
$52,250 plus 8% of net taxable
auditing the return, include the parcel number along with the real
$1,500,000
value over $1,000,000
estate description and address.
Over $1,500,000
$92,250 plus 10% of net
taxable value over $1,500,000
Schedule B, Tangible Personal Property
Class B
All tangible personal property owned individually by the decedent
that was physically located in Indiana at the time of the decedent’s
Net Taxable Value of
Inheritance Tax
death and that is transferred by will or intestate succession at death
Property
is listed here, including but not limited to:
Interests Transferred
• Household goods
$100,000 or less
7% of net taxable value
• Automobiles
Over $100,000 but not over
$7,000 plus 10% of net taxable
• Works of art
$500,000
value over $100,000
• Books
Over $500,000 but not over
$47,000 plus 12% of net
• Silverware
$1,000,000
taxable value over $500,000
• Growing crops
• Clothing
Over $1,000,000
$107,000 plus 15% of net
taxable value over $1,000,000
• Jewelry
• Boats
Class C
• Livestock
• Farm machinery
• Crops in storage
Net Taxable Value of
Inheritance Tax
Property
This schedule does not include tangible personal property that the
Interests Transferred
decedent owned jointly or that was transferred by some means
$100,000 or less
10% of net taxable value
other than by will or by intestate succession. Such tangible personal
Over $100,000 but not over
$10,000 plus 15% of net
property should be listed on Schedule C.
$1,000,000
taxable value over $100,000
Schedule C, Transfers During Decedent’s Life
Over $1,000,000
$145,000 plus 20% of net
taxable value over $1,000,000
Any transfer of Indiana real property and tangible personal
property located in Indiana by the decedent to a transferee that
General Instructions
is completed at death and is not transferred by will or by intestate
Indicate the nonresident decedent’s date of death in box 3, and
succession should be listed on this schedule:
place the decedent’s Social Security number in box 5.
Trust
1.
If the decedent died testate, attach a copy of the will to the return.
Indiana real property and tangible personal property located
If the decedent died intestate, check the box in item 7.
in Indiana that the decedent transferred into a trust prior
2
Schedule D, Deductions and Recapitulation
to death may be subject to the Indiana Inheritance Tax. List
every real property parcel and tangible personal property
located in Indiana of the decedent’s trust on this schedule,
All necessary costs of administering the estate involving the
but do not list out-of-state real property. These assets are
transfer of Indiana real property and tangible personal property
to be valued at their fair market values on the date of the
located in Indiana may be deducted from the value of property
decedent’s death or on the alternative valuation date if
interests transferred by the decedent by will, by intestate law, or
properly elected on the Form 706 and accepted by the IRS.
by trust.
Include a copy of the instrument creating the trust with the
return.
The following items, and no others, may be deductible:
Transfers in Contemplation of Death
2.
• Reasonable attorney fees, personal representative fees, and
List all transfers of Indiana real property or tangible personal
trustee fees for administration of Indiana property subject to
property located in Indiana that the decedent made by deed,
Indiana Inheritance Tax
gift, or bargain sale in contemplation of death. Also list all
• Taxes on the decedent’s real property that is subject to the
transfers made by the decedent within one year prior to
Indiana Inheritance Tax, if the taxes were a lien on the real
death. Indicate the date of each transfer, the name of each
property at the time of the decedent’s death
transferee, the type of property interest transferred, and the
• Taxes on the decedent’s tangible personal property located in
fair market value of the property interest transferred as of the
Indiana that is subject to the Indiana Inheritance Tax if such
date of transfer.
taxes were due and owing at the time of the decedent’s death
• Valid liens against Indiana real property and tangible personal
Transfers within the year preceding death are presumed to
property located in Indiana that is subject to Indiana Inheritance
have been made in contemplation of the death. However,
Tax
this presumption is rebuttable. To rebut the presumption,
• Valid claims against the decedent’s domiciliary estate (estate is
set forth all facts necessary for a proper determination of the
opened in the state where the decedent was living at the time of
taxability of such
transfers.
Include supporting documents
death) that will not be paid by the domiciliary estate because it
with the return. See 45 Ind. Admin. Code 4.1-2-6.
is exhausted
• Selling expenses when the property is actually sold during the
Transfers Intended to Take Effect in Possession or
3.
administration of the estate
Enjoyment at or after Death
List all Indiana real property and tangible personal property
Nondeductible items include, but are not limited to, the
located in Indiana transferred by the decedent for less
following:
than full consideration if the transferee did not receive full
possession and enjoyment of such property until at or after
• Decedent’s funeral expenses
the decedent’s death. This includes property the decedent
• Fiduciary income taxes
transferred subject to a retained life estate. You must value
• Funeral flowers
such property at full fair market value at the time of the
• Federal estate tax
decedent’s death. Example: John deeds his farm to Mary and
• Estimated selling expenses of unsold real estate
Sam in 1970, retaining a life estate in the farm. In 2012, when
• Expenses connected with property not subject to Indiana
John dies, the full fair market value of the farm is included in
Inheritance Tax
John’s estate for inheritance tax purposes.
• Funeral dinners
• Traveling expenses for beneficiaries, or others, to attend the
4.
Joint Tenancies with Rights of Survivorship
decedent’s funeral
All Indiana real property or tangible personal property
• Indiana Inheritance Tax incurred as a result of a decedent’s
located in Indiana in which the decedent held an interest at
death
the time of death as a joint tenant with rights of survivorship
must be entered on this schedule. Describe the joint property
In the recapitulation section, list the individual totals from
and list the names of the surviving joint tenants.
Schedules A, B, and C and total all of the taxable assets. List the
total deductions from Schedule D. Subtract the total deductions
Include the full fair market value of the jointly owned
from the total taxable assets, and enter the total taxable estate.
property on Schedule C. If you believe that less than the full
value of the entire property is includible for tax purposes,
Schedule E, Persons Beneficially Interested in
you must establish your right to exclude part of the value.
This Estate and Inheritance Tax Computation
Enclose any documentation that substantiates the use of the
List all persons, including corporations and other organizations,
lesser value with the return.
receiving an interest from the decedent no matter how the transfer
took place. Also list the current address of each transferee. If
the space provided is not adequate to list all transferees, attach
additional pages immediately after this page.
3
Power of Attorney
For individuals dying after June 30, 2012, a transfer to a
3.
partnership, a limited partnership, a limited liability partnership,
If the preparer is not a lawyer or transferee of the decedent’s
an association, a corporation, a limited liability company, a trust,
estate and the personal representative wants the department
or a similar entity will be considered a transfer to each individual
to disclose information to the preparer, a completed
with a beneficial (whether discretionary or not) or ownership
Form IH-28, power of attorney, must be provided with
interest in the entity. Each individual is liable for a percentage of
Form IH-12.
taxes imposed equal to that individual’s beneficial or ownership
Dollar Amounts
interest in that entity. List the name and address of the entity
4.
and each beneficiary or owner of the entity and their respective
Dollar amounts may be rounded to the nearest dollar.
percentage of beneficial or ownership interest in the entity. Please
contact a professional who is familiar with inheritance tax matters
5.
Fair Market Value
or the department’s Inheritance Tax Division for clarification on
All property transferred should be valued at the fair market
the taxation of transfers to such entities.
value on the date of the decedent’s death, except when the
alternative valuation is properly elected, used, and accepted
List the relationship of the transferee to the decedent. Include
for federal estate tax purposes; then the alternative valuation
enough information to determine the class to which the beneficiary
should also be used for inheritance tax. The fair market value
belongs. For example: Lisa Smith, niece, daughter of decedent’s
is the price to which a willing buyer and a willing seller agree,
brother. Also list the entire birth date of each transferee. Failure
neither being under compulsion to buy or sell and both being
to completely describe the relationship or to list the birth dates can
fully aware of all relevant facts surrounding the exchange.
significantly slow the audit of the return.
Enclose copies of all appraisals or closing statements for
such real estate to the return.
When stating the value of property transferred to each transferee
is to receive, list the total value of the property interests transferred
6.
Additional Pages
to each transferee. The amount of each transferee’s exemption is
If there is not enough space available on any page, continue
determined by the relationship of that transferee to the decedent.
the list on an additional page and enclose it immediately after
such page.
Under the exemption columns, enter the appropriate exemption
amount based on the class of each transferee of the decedent’s
interests in real and tangible property.
Enter in the final column the amount of inheritance tax due
for each transferee. Compute the amount of tax due for each
transferee by multiplying that transferee’s net taxable interest (i.e.,
the total value of interest minus the applicable exemption) by the
appropriate tax rate.
Additional Requirements
1.
QTIP Election
If you elect to treat property passing from the decedent as
property transferred directly to the surviving spouse for
Indiana Inheritance Tax purposes, the election must be made
in writing and enclosed with the original return. Electing on
the U.S. Estate Tax Return (Form 706) is not an election for
Indiana on this return. See 45 Ind. Admin. Code 4.1-3-5(b)
for an acceptable form for the Indiana QTIP election. Once
made, the QTIP election is irrevocable.
Supplemental Documents
2.
When filing the return, enclose all supplemental documents
used to substantiate the statements contained in the return.
Examples include appraisals, trusts, affidavits, disclaimers,
elections, death certificates, and all other documents
necessary to complete the audit of the return.
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