Free HT-007a Instructions for the Wisconsin Estate Tax Return Form W706 and Form W706 Schedules TC, TC(A) and TC(B) - July 2009 - Wisconsin

Instructions for the Wisconsin Estate Tax Return Form W706 and Form W706 Schedules TC, TC(A) and TC(B)
For Estates of Resident and Nonresident Decedents when Date of Death is on or after January 1, 1992
For deaths occurring after 123191 and before 10102 the Wisconsin estate tax is equal to the credit for state death taxes allowable on the federal Form 706. If only a portion of the decedent's property is within the jurisdiction of Wisconsin, the tax is prorated.

GENERAL INSTRUCTIONS
Who Must File
The Wisconsin Form W706 must be filed by the person who is or would be responsible for filing the Federal Estate Tax Return (i.e., personal representative, special administrator, trustee, distributee or other person who signs or would sign the Federal Form 706). For deaths occurring after 93002 and before 1108 Form W706 must be filed for every decedent whose gross estate, plus adjusted taxable gifts and specific exemption, is $675,000 or more. For deaths occurring after 123192 and before 10102 Form W706 must be filed for every estate that had a requirement to file a federal estate tax return (Form 706). There is no Wisconsin estate tax for deaths occurring on or after January 1, 2008. A tax is imposed upon any transfer of property to any distributee in either of the following cases: (1) when the transfer is from a Wisconsin resident decedent, or (2) when the property trans ferred is within the jurisdiction of Wisconsin and the decedent was not a resident of Wisconsin on date of death. For deaths occurring after 93002 and before 1108 the Wisconsin estate tax is based on the Federal State Death Tax Credit as it was computed on December 31, 2000. This tax is imposed on both resident and nonresident decedents. If only a portion of a decedent's property is within the jurisdiction of Wisconsin, the tax imposed is prorated. For decedents dying on or after January 1, 2005, the state death tax paid to any state is no longer a credit against the federal estate tax. The state death tax is a deduction from the federal gross estate. The Wisconsin estate tax is still computed with regard to the federal taxable estate. However, the amount of the federal taxable estate will appear after deductions allowed on the federal return. This results in an interrelated computation of the Wisconsin estate tax and corresponding deduction. To compute the Wisconsin estate tax and corresponding federal deduction, a circular computation must be made. The Department has developed two tax computation sched ules: Form W706 Schedule TC ­ Estate Tax Computation Schedule A and Form W706 Schedule TC ­ Estate Tax Computation Schedule B to compute the Wisconsin Estate tax for decedents dying on or after January 1, 2005. These schedules allow you to do the circular computation six times and the applicable schedule should be used to compute the estate tax. See the instructions for each schedule on pages 4 and 5 to determine which schedule you should use. The Wisconsin estate tax for deaths occurring after 93002 and before 1105 is computed on Schedule TC ­ Tax Computation Schedule.
HT007a (R. 709)

When to File
The Form W706 is due 9 months after the date of death. If the due date falls on a Saturday, Sunday or federal holiday, the due date is the next business day. A filing sent via the U.S. Postal Service is considered timely if it is postmarked by the due date and is received by the Depart ment within 5 working days of the due date. A filing sent by any other means will be considered timely only if it is received by the department on or before the due date. If you cannot file on time, you can request an extension. For an estate that has a federal filing requirement, the Federal Extension Form 4768 will be accepted by the Department if approved by the Internal Revenue Service. A copy of the approved extension must be submitted with the Form W706 within the approved time period. If you do not have a federal filing requirement or will not be obtaining a federal extension, you may apply for a Wisconsin extension. You should complete Wisconsin Form W4768 and submit it to the Department in duplicate within 9 months following the decedent's date of death. The maximum extension of time to file is 6 months. An extension of time to file does not extend time to pay the Wisconsin estate tax. The tax is due 9 months after the date of death.

Payment of Tax and Refund
The Wisconsin estate tax is due 9 months after the date of death. Payment must be made to the Wisconsin Department of Revenue and must accompany the Form W706. To be considered timely, the payment must be postmarked no later than the due date and received by the Department within 5 working days of the due date. A payment sent by any other means than the U.S. Postal Service will be considered timely if it is received by the Department on or before the due date. If you cannot file the Wisconsin Form W706 on time but need to make the payment of the Wisconsin estate tax, submit the payment with a completed Form 401T. If you want a receipt of the payment, submit the 401T in duplicate with a self addressed stamped envelope and one copy of the 401T will be returned to you. If you need to request a Wisconsin exten sion, submit Form W4768 and Form 401T with the Wisconsin estate tax payment.

If you make a prepayment and an additional amount is due when filing Form W706, pay the additional amount due as shown on Line 10 of the return. Any overpayment of the tax determined will be refunded. No interest will be paid on the refund. Any late payment will first be applied to penalties, interest and last to the tax principal (Sec. 72.30(7) Wis. Stats.). If a payment is returned for any reason, the payment is con sidered void and interest is computed from the date of death (Sec. 72.23 Wis. Stats.). Wisconsin estate tax payments are due 9 months from the date of death. There is no extension of time to pay Wisconsin estate tax.

Certificate Determining Estate Tax
Following the completion of the Department's review, a dated Certificate Determining Estate Tax will be issued. Any person dissatisfied with the determination may apply for a hearing with the circuit court within 6 months from the date the Certificate Determining Estate Tax is issued (Sec. 72.30(4) Wis. Stats.).

Tax Help
You can access the Department's website 24 hours a day, 7 days a week, at www.revenue.wi.gov. From this website, you can download forms, instructions and see answers to frequently asked questions. If you need additional informa tion, you may email us at [email protected] or call us at (608) 2662772.

Interest
If the estate tax determined is not paid within 9 months of the decedent's death, interest is due. Interest is calculated from the date of death to the date the tax is paid at the rate of 12% per year. Interest is assessed regardless of any extension to file the return.

FORM W706 ­ LINE INSTRUCTIONS
The Wisconsin estate tax is computed using amounts from the Federal Estate Tax Return Form 706. You must complete the Federal Form 706 and all supporting applicable schedules prior to completing the Wisconsin Form W706. This must be done whether or not you have a federal filing requirement. Use the Federal Form 706 appropriate for the date of death of the decedent. For deaths occurring in 2007, use Form 706 (Rev. September 2007) for decedents dying after December 31, 2006 and before January 1, 2008. Complete the top portion of the Form W706 by printing or typing the required information in the boxes provided. Use black ink to complete the form. You must also complete Wisconsin Schedule TC ­ Estate Tax Computation Schedule A or B or Schedule TC ­ Tax Computation Schedule, as appropriate. Will a Closing Certificate for Fiduciaries be needed to close the estate with the circuit court? Check the "Yes" box only if the estate is subject to probate and the court is requesting the certificate. Checking the "Yes" box does not request a Closing Certificate for Fiduciaries. You must file a Wisconsin Schedule CC to request a Closing Certificate for Fiduciaries. Line 1 Computation of Tax For deaths occurring after 123104 Complete Schedule TC (A) or (B) prior to completing this line. Enter the lesser of line 7 or 17, Column F of Schedule TC (A) or (B). For deaths occurring after 93002 and before 1105 Complete Schedule TC ­ Tax Computation Schedule, lines 1 through 5 and lines 8 through 13. Enter the lesser of line 5 or 13. For deaths occurring after 123191 and before 10102 The Wisconsin estate tax is equal to the state death tax credit allowable on the federal estate tax return as finally determined.

Penalty
Any person who fails to file a return by the due date is subject to a penalty of 5% of the tax due but not less than $25 nor more than $500 (Sec. 72.235 Wis. Stats.).

Attachments
Submit the following applicable documents with your Wisconsin Form W706 and Schedule TC (A) or (B): · A complete copy of the Federal Estate Tax Return Form 706 and copies of ALL schedules and attachments · Copy(ies) of federal gift tax returns(s) (Form 709) · Life Insurance Statements (Form 712) · Copy of approved federal extension (Form 4768) · Death certificate · Will and any codicils · Trust instrument(s) and any amendments · Other states death tax returns · Appraisals · Disclaimers · Power of Attorney form · Proof of residency if other than the United States

Where to File
Mail the completed Form W706 and all attachments to the following address: Wisconsin Department of Revenue Mail Stop 5144 PO Box 8906 Madison WI 537088906 The street address is: Wisconsin Department of Revenue, 2135 Rimrock Road, Madison WI 53713.
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Line 2 Gross Value of Property in Wisconsin Enter the gross value of property that is taxable to Wisconsin (not reduced by mortgages and liens). Line 3 Gross Value of Total Estate Enter the amount from line 1 of Part 2, Federal Form 706. Line 4 Percent of Property in Wisconsin The percent age of property in Wisconsin is calculated by dividing the gross value of property in Wisconsin by the gross value of the total estate. Divide line 2 of Form W706 by line 3 of Form W706 and enter the result on this line. The percentage should be carried to 4 decimal places. Example: A Wisconsin resident died October 1, 2005 with a gross estate of $750,000 of which $350,000 was outofstate real estate. Enter 53.33 on line 4. $400,000 $750,000 WI Property Gross Estate = .5333 or 53.33%

You may amend the estate tax return to claim a refund within 6 months of the date on the Certificate Determining Estate Tax. To protect your claim for refund after a Certificate Determining Estate Tax has been issued, you must apply for a hearing with the circuit court within 6 months from the date on the Certificate Determining Estate Tax. If you become aware of the claim for refund shortly before the 6 month time period expires or you have not reached an acceptable resolution of the claim for refund with the Department before the 6 month time period expires, you must apply for a hearing with the circuit court within the 6 month time period to protect your claim. You must amend the Wisconsin W706 to add afterdiscovered assets at any time.

Adjustments
If the estate is entitled to a refund or has an additional tax liability because of a federal estate tax audit, the estate must notify the Wisconsin Department of Revenue within 30 days of receiving notice of that fact. Submit a copy of the federal audit report, federal closing letter and/or other documentation that supports the adjustments.

Line 5 Wisconsin Estate Tax For deaths occurring after 123104 enter the amount from line 20, Column F of Schedule TC (A) or (B). For deaths occurring between 10102 and 123104 (inclusive) enter the amount from line 16 of Schedule TC ­ Tax Computation Schedule. For deaths occurring between 1192 and 93002 (inclusive) multiply line 1 by line 4.

Installment Payments
Some estates may qualify to pay the Wisconsin estate tax in installments. If a percentage of the federal tax on an estate may be paid in installments under section 6166 of the Internal Revenue Code (IRC), the same percentage of Wisconsin estate tax may be paid under the same installment schedule. An election to pay in installments for federal estate tax pur poses does not constitute an election for Wisconsin estate tax purposes. Written notice of the election to pay the Wisconsin estate tax in installments must be filed with the Wisconsin Department of Revenue within 9 months after the decedent's death. The provisions on acceleration of installment payments under section 6166(g) of the IRC shall apply. Interest is com puted at the rate of 12% per annum from date of death. Contact the department for the approved lien form. Distributees of real estate must provide the Department a certified copy of a lien for unpaid taxes and interest on the property to secure payment and shall record the lien in the office of the register of deeds of the county in which the property is located. Distributees of personal property shall either provide a lien or provide the Department a financial guarantee bond equal to the estimated tax and interest if the tax has not been determined. Upon determination of the tax, distributees of personal property shall provide a lien or a financial guarantee bond sufficient to secure payment of the tax and interest or pay the excess over the amount of tax and interest secured by the bond. Any distributee who fails to provide the security required or disposes of onethird or more of the property on which the tax is secured, shall pay the tax in full.

Line 6 Interest If the estate tax determined is not paid within 9 months of the decedent's death, interest is due. Interest should be calculated from the date of death to the date paid at the rate of 12% per year. Line 7 Penalty Any person who fails to file a return by the due date is subject to a penalty of 5% of the Wisconsin estate tax (Line 5, Form W706). The penalty cannot be less than $25 or more than $500 and is imposed even if there is no tax due. Line 8 Total Tax, Interest and Penalty Add lines 5, 6 and 7 of Form W706 and enter the result here. Line 9 Previous Payment Enter the date of previous pay ment in the space provided and the amount paid on line 9.

SPECIAL INSTRUCTIONS
Amending Form W706
If you find that you must change something on a return that has already been filed, you should: · File another Form W706 and Schedule TC (A) or (B) or Schedule TC ­ Tax Computation Schedule, if appropriate, with the amended information reported. · Check the "Amended" box on the Form W706. · Attach a copy of pages 1, 2, and 3 of federal Form 706 and all schedules affected by the change(s).
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INSTRUCTIONS FOR FORM W706 SCHEDULE TC ­ ESTATE TAX COMPUTATION SCHEDULE A
The Wisconsin estate tax for deaths in 2005 is computed using amounts from the Federal Estate Tax Return, Form 706. You must complete the federal Form 706 and all supporting applicable schedules prior to completing the Schedule TC. This must be done whether or not you have a federal filing requirement. You should use Schedule TC (A) if: · The decedent died on or after January 1, 2005, · The decedent was a resident of Wisconsin on the date of death and · All of the decedent's property is taxable to Wisconsin. If ALL THREE of the above requirements are NOT met, you should use Form W706 Schedule TC (B). See page 5 for the Instructions for Form W706 Schedule TC (B). To compute the Wisconsin estate tax and corresponding federal deduction for deaths in 2005, a circular computation must be made. The Schedule TC (A) is designed for 6 computations. The computations are in columns and are labeled A, B, C, D, E and F. You must first complete Column A, lines 1 through 20 and get a result before moving on to Column B. Line 1 Enter the amount from Line 1 of Part 2, Federal Form 706. This amount is the same for all columns. Line 2 Enter the amount from Line 3a of Part 2, Federal Form 706. This amount is the same for all columns. Line 3 Column A: Column B: Column C: Column D: Column E: Column F: Wisconsin State Death Tax Deduction Do not enter any amount. Enter the amount from line 20, Column A Enter the amount from line 20, Column B Enter the amount from line 20, Column C Enter the amount from line 20, Column D Enter the amount from line 20, Column E

Line 6 Adjusted Taxable Estate Subtract line 5c from line 4 and enter the result. Line 7 Compute the tax on the amount on line 6 using Table B on page 6. Enter the result. Line 8 Percent of property in Wisconsin Complete lines 2, 3 and 4 of Form W706. Enter the percentage (carried to 4 decimal places) from line 4 of Form W706 on line 8 of Schedule TC (A), columns A through F. The percentage should equal 100%. If not, see Schedule TC (B). Line 9 Multiply line 7 by line 8 and enter the result.

Line 10 Add the amounts on lines 3a and 4 of part 2, Federal Form 706 (Rev. August 2005) and enter the result. Line 11 Column A: Column B: Column C: Column D: Column E: Column F: Wisconsin State Death Tax Deduction Do not enter any amount. Enter the amount from line 20, Column A Enter the amount from line 20, Column B Enter the amount from line 20, Column C Enter the amount from line 20, Column D Enter the amount from line 20, Column E

NOTE: This is a deduction, not a credit. Line 12 Subtract line 11 from line 10 and enter the result. Line 13 Nontaxable Insurance/ Pensions Enter the amount from line 5a above. Line 14 Taxable Amount Subtract line 13 from line 12 and enter the result. Line 15 Compute the tentative tax on the amount on line 14, using Table A on page 6. Enter the result. Line 16a Enter the amount from line 7 of Part 2, Federal Form 706. Line 16b Wisconsin Unified Credit The Wisconsin Unified Credit is $220,550. Line 16c Add the amounts on lines 16a and 16b and enter the result. NOTE: If you have an entry on line 10 of the Federal Form 706 (adjustments to unified credit), subtract this amount from the sum of lines 16a and 16b and enter the result on line 16c. Line 17 Subtract line 16c from line 15 and enter the result. Line 18 Percent of Property in Wisconsin Enter the amount from line 8 above. Line 19 Multiply line 17 by line 18 and enter the result.

NOTE: This is a deduction, not a credit. Line 4 Subtract line 3 from line 2 and enter the result.

Line 5a Nontaxable Insurance and Retirement Benefits No tax is imposed upon the transfer of benefits or any right or interest in benefits payable to a decedent's estate or distributee for any employee retirement plan of the State of Wisconsin or a 1st class city (Secs. 40.08(1) and 62.63(4), Wis. Stats.). Life insurance administered by the Department of Employee Trust Funds is nontaxable for Wisconsin estate tax purposes. Enter the amount of nontaxable insurance or retirement benefits on line 5a of Schedule TC (A). This amount is the same for all columns. Line 5b Exemption The Wisconsin allowable exemption amount is $60,000. Line 5c Add lines 5a and 5b and enter the result.
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Line 20 Wisconsin Estate Tax Enter the lesser of the amount on line 9 or line 19, but not less than zero. Enter the amount shown in column F, line 20 on line 5 of Wisconsin Form W706.

INSTRUCTIONS FOR FORM W706 SCHEDULE TC ­ ESTATE TAX COMPUTATION SCHEDULE B
The Wisconsin estate tax for deaths after 123104 is computed using amounts from the Federal Estate Tax Return, Form 706. You must complete the federal Form and all supporting applicable schedules prior to completing the Schedule TC (B). This must be done whether or not you have a federal filing requirement. You should use Schedule TC (B) if: · The decedent died on or after January 1, 2005 and · Only a portion of the decedent's property is taxable to Wis consin. To compute the Wisconsin estate tax and corresponding federal deduction for deaths in 2005, a circular computation must be made. The Schedule TC (B) is designed for 6 computations. The computations are calculated in columns and are labeled A, B, C, D, E and F. You must first complete Column A, lines 1 through 20 and get a result before moving on to Column B. Line 1 Enter the amount from Line 1 of Part 2, Federal Form 706. This amount is the same for all columns. Line 2 Enter the amount from Line 3a of Part 2, Federal Form 706. This amount is the same for all columns. Line 3a Other States Death Tax Deduction Add the death taxes paid to all OTHER states, as deducted on line 3b of federal Form 706. Enter the total. Do not include any amount for Wisconsin estate taxes paid on this line. Line 3b Wisconsin State Death Tax Deduction Do not enter any amount. Enter the amount from line 20, Column A Enter the amount from line 20, Column B Enter the amount from line 20, Column C Enter the amount from line 20, Column D Enter the amount from line 20, Column E Column A: Column B: Column C: Column D: Column E: Column F:

Line 6 Adjusted Taxable Estate Subtract line 5c from line 4 and enter the result. Line 7 Compute the tax on the amount on line 6 using Table B on page 6. Enter the result. Line 8 Percent of Property in Wisconsin Complete lines 2, 3 and 4 of Form W706. Enter the percentage (carried to 4 decimal places) from line 4 of Form W706 on line 8 of Schedule TC (B), Columns A through F. The percent of property in Wisconsin is calculated by dividing the gross value of property in Wisconsin by the gross value of the total estate. The percentage should be carried to 4 decimal places. Example: A Wisconsin resident died October 1, 2005 with a gross estate of $750,000 of which $350,000 was outofstate real estate. The percent of property in Wisconsin is 53.33 calculated as follows: $400,000 $750,000 WI Property Gross Estate = .5333 or 53.33%

Line 9 Multiply line 7 by line 8 and enter the result.

Line 10 Add the amounts on lines 3a and 4 of part 2, federal Form 706 and enter the result. Line 11a Other States Death Tax Deduction Enter the amount from line 3a above. Line 11b Wisconsin State Death Tax Deduction Do not enter any amount. Enter the amount from line 20, Column A Enter the amount from line 20, Column B Enter the amount from line 20, Column C Enter the amount from line 20, Column D Enter the amount from line 20, Column E Column A: Column B: Column C: Column D: Column E: Column F:

NOTE: This is a deduction, not a credit. Line 11c Add line 11a and line 11b and enter the result.

NOTE: This is a deduction, not a credit. Line 3c Add lines 3a and 3b and enter the result. Line 4 Subtract line 3c from line 2 and enter the result.

Line 12 Subtract line 11c from line 10 and enter the result. Line 13 Nontaxable Insurance/ Pensions Enter the amount from line 5a above. Line 14 Taxable Amount Subtract line 13 from line 12 and enter the result. Line 15 Compute the tentative tax on the amount on line 14, using Table A on page 6. Enter the result. Line 16a Enter the amount from line 7 of Part 2, Federal Form 706. Line 16b Wisconsin Unified Credit The Wisconsin Unified Credit is $220,550. Line 16c Add the amounts on lines 16a and 16b and enter the result. NOTE: If you have an entry on line 10 of the federal Form 706 (adjustment to unified credit), subtract this amount from the sum of lines 16a and 16b and enter on line 16c.
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Line 5a Nontaxable Insurance and Pensions No tax is imposed upon the transfer of benefits or any right or interest in benefits payable to a decedent's estate or distributee for any employee retirement plan of the State of Wisconsin or a 1st class city. (Secs. 40.08(1) and 62.63(4), Wis. Stats.). Life insurance administered by the Department of Employee Trust Funds is nontaxable for Wisconsin estate tax purposes. Enter the amount of nontaxable insurance or pensions on line 5a of Schedule TC (B). This amount is the same for all columns. Line 5b Exemption The Wisconsin allowable exemption amount is $60,000. Line 5c Add lines 5a and 5b and enter the result.

Line 17 Subtract line 16c from line 15 and enter the result. Line 18 Percent of Property in Wisconsin Enter the amount from line 8 above. Line 19 Multiply line 17 by line 18 and enter the result.

Example 3: The decedent was a resident of Illinois. She owned real estate valued at $600,000 located in Wisconsin. The total federal gross estate is $5,500,000 and the total allowable deductions are $150,000. The death tax paid to Illinois was $350,000. The percent of property located in Wisconsin is 10.91%, calculated as follows: $ 600,000 WI Property $5,500,000 Gross Estate = .1091 or 10.91%

Line 20 Wisconsin Estate Tax Enter the lesser of the amount on line 9 or line 19 but not less than zero. Enter the amount shown in column F, line 20 on line 5 of Wisconsin Form W706.

You should use Form W706 Schedule TC ­ Estate Tax Computation Schedule (B). The Wisconsin estate tax is $42,208. See page 9 for the completed Schedule TC.

EXAMPLES
Example 1: The decedent was a resident of Wisconsin and all of his property is taxable to Wisconsin. He did not have any Wisconsin nontaxable insurance or pensions. The total federal gross estate is $725,000 and the total allowable deductions are $30,000. You should use Form W706 Schedule TC ­ Estate Tax Computation Schedule (A). The Wisconsin estate tax is $5,388. See page 7 for the completed Schedule TC. Example 2: Assume the same facts as in Example 1 except that $100,000 of adjusted taxable gifts was reported on line 4 of federal Form 706. The Wisconsin estate tax is $17,115. See page 8 for the completed Schedule TC.

INSTRUCTIONS FOR FORM W706 SCHEDULE TC ­ Tax Computation Schedule
Line 3b Nontaxable Insurance and Pensions No tax is imposed upon the transfer of benefits or any right or interest in benefits payable to a decedent's estate or distributee for any employee retirement plan of the State of Wisconsin or Wis consin 1st class city (Sec. 40.08(1) Wis. Stats.). Life insurance administered by the Department of Employee Trust Funds is nontaxable for Wisconsin estate tax purposes.

Table A ­ Unified Rate Schedule
Column A Column B Column C Column D

Table B ­ Computation of Maximum Credit for State Death Taxes
Column 1 Column 2 Column 3 Column 4

Taxable amount over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2,000,000 2,500,000 3,000,000

Taxable amount not over $ 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2,000,000 2,500,000 3,000,000

Tax on amount in Column A $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 448,300 555,800 780,800 1,025,800 1,290,800

Rate of tax (Percent) on excess over amount in Column A 18 % 20 22 24 26 28 30 32 34 37 39 41 43 45 49 53 55

Adjusted tax able estate Adjusted Credit equal to or taxable estate on amount more than ­ less than ­ in Column 1 $ 0 40,000 90,000 140,000 240,000 $ 40,000 90,000 140,000 240,000 440,000 640,000 840,000 1,040,000 1,540,000 2,040,000 2,540,000 3,040,000 3,540,000 4,040,000 5,040,000 6,040,000 7,040,000 8,040,000 9,040,000 10,040,000 $ 0 0 400 1,200 3,600 10,000 18,000 27,600 38,800 70,800 106,800 146,800 190,800 238,800 290,800 402,800 522,800 650,800 786,800 930,800 1,082,800

Rate of credit (Percent) on excess over amount in Column 1 None 0.8 % 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 8.0 8.8 9.6 10.4 11.2 12.0 12.8 13.6 14.4 15.2 16.0

440,000 640,000 840,000 1,040,000 1,540,000 2,040,000 2,540,000 3,040,000 3,540,000 4,040,000 5,040,000 6,040,000 7,040,000 8,040,000 9,040,000 10,040,000 6

Form W706 ­ Schedule TC
Estate of:

Estate Tax Computation Schedule
For an estate of a resident decedent when the decedent's date of death is on or after January 1, 2005 and all property is taxable to Wisconsin
Column A Column B
(1) (2) (3)(20A)

Example 1
(1) (2)

A
Column F
(1) (2) (3)(20E) (4) (5a) (5b) (5c) (6)

SS#
1) Line 1 of Part 2, Federal Form 706 2) Line 3a of Part 2, Federal Form 706 3) Wisconsin State Death Tax Deduction
(line 20 from preceding column)

Column C
(1) (2) (3)(20B) (4) (5a) (5b) (5c) (6)

Column D
(1) (2) (3)(20C) (4) (5a) (5b) (5c) (6)

Column E
(1) (2) (3)(20D) (4) (5a) (5b) (5c) (6)

725,000 695,000

725,000 695,000 7,400 687,600 0 $ 60,000 60,000 627,600

725,000 695,000 4,662 690,338 0 $ 60,000 60,000 630,338

725,000 695,000 5,675 689,325 0 $ 60,000 60,000 629,325

725,000 695,000 5,300 689,700 0 $ 60,000 60,000 629,700

725,000 695,000 5,439 689,561 0 $ 60,000 60,000 629,561

4) Subtract line (3) from line (2) 5a) Nontaxable insurance / pensions b) Exemption c) Add lines (5a) and (5b) 6) Adjusted taxable estate. Subtract line (5c) from line (4) 7) Compute Wisconsin Estate Tax on line (6) using Table B. 8) Percent of property in Wisconsin 9) Multiply line (7) by line (8)
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(4) (5a) (5b) (5c) (6)

695,000 0 $ 60,000 60,000 635,000

(4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11)(20A)

(7) (8) (9) (10)

17,800 100% 17,800 695,000

17,504 100% 17,504 695,000 7,400 687,600 0 687,600 225,212 0 $ 220,550 220,550 4,662 100% 4,662 4,662

(7) (8) (9) (10) (11)(20B) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20C)

17,614 100% 17,614 695,000 4,662 690,338 0 690,338 226,225 0 $ 220,550 220,550 5,675 100% 5,675 5,675

(7) (8) (9) (10) (11)(20C) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20D)

17,573 100% 17,573 695,000 5,675 689,325 0 689,325 225,850 0 $ 220,550 220,550 5,300 100% 5,300 5,300

(7) (8) (9) (10) (11)(20D) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20E)

17,588 100% 17,588 695,000 5,300 689,700 0 689,700 225,989 0 $ 220,550 220,550 5,439 100% 5,439 5,439

(7) (8) (9) (10) (11)(20E) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20F)

17,582 100% 17,582 695,000 5,439 689,561 0 689,561 225,938 0 $ 220,550 220,550 5,388 100% 5,388 5,388

10) Total of line 3a and line 4 of Part 2, Federal Form 706 11) Wisconsin State Death Tax Deduction
(line 20 from preceding column)

12) Subtract line (11) from line (10) 13) Nontaxable insurance / pensions 14) Taxable Amount Subtract line (13) from line (12) 15) Compute tentative tax on line (14) using Table A 16a) Line 7 of Part 2, Federal Form 706 b) Unified Credit as of 12-30-2000 c) Add lines (16a) and (16b) 17) Subtract line (16c) from line (15) 18) Percent of property in Wisconsin 19) Multiply line (17) by line (18) 20) WISCONSIN ESTATE TAX
(lesser of line (9) or (19), but not less than 0) Enter amount from line 20F on line 5 of Form W706
HT-006a (N. 12-05)

(12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20A)

695,000 0 695,000 227,950 0 $ 220,550 220,550 7,400 100% 7,400 7,400

(12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20B)

Wisconsin Department of Revenue

Form W706 ­ Schedule TC
Estate of:

Estate Tax Computation Schedule
For an estate of a resident decedent when the decedent's date of death is on or after January 1, 2005 and all property is taxable to Wisconsin
Column A Column B
(1) (2) (3)(20A)

Example 2
(1) (2)

A
Column F
(1) (2) (3)(20E) (4) (5a) (5b) (5c) (6)

SS#
1) Line 1 of Part 2, Federal Form 706 2) Line 3a of Part 2, Federal Form 706 3) Wisconsin State Death Tax Deduction
(line 20 from preceding column)

Column C
(1) (2) (3)(20B) (4) (5a) (5b) (5c) (6)

Column D
(1) (2) (3)(20C) (4) (5a) (5b) (5c) (6)

Column E
(1) (2) (3)(20D) (4) (5a) (5b) (5c) (6)

725,000 695,000

725,000 695,000 17,800 677,200 0 $ 60,000 60,000 617,200

725,000 695,000 17,088 677,912 0 $ 60,000 60,000 617,912

725,000 695,000 17,116 677,884 0 $ 60,000 60,000 617,884

725,000 695,000 17,115 677,885 0 $ 60,000 60,000 617,885

725,000 695,000 17,115 677,885 0 $ 60,000 60,000 617,885

4) Subtract line (3) from line (2) 5a) Nontaxable insurance / pensions b) Exemption c) Add lines (5a) and (5b) 6) Adjusted taxable estate. Subtract line (5c) from line (4) 7) Compute Wisconsin Estate Tax on line (6) using Table B. 8) Percent of property in Wisconsin 9) Multiply line (7) by line (8)
8

(4) (5a) (5b) (5c) (6)

695,000 0 $ 60,000 60,000 635,000

(4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11)(20A)

(7) (8) (9) (10)

17,800 100% 17,800 795,000

17,088 100% 17,088 795,000 17,800 777,200 0 777,200 258,908 0 $ 220,550 220,550 38,358 100% 38,358 17,088

(7) (8) (9) (10) (11)(20B) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20C)

17,116 100% 17,116 795,000 17,088 777,912 0 777,912 259,186 0 $ 220,550 220,550 38,636 100% 38,636 17,116

(7) (8) (9) (10) (11)(20C) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20D)

17,115 100% 17,115 795,000 17,116 777,884 0 777,884 259,175 0 $ 220,550 220,550 38,625 100% 38,625 17,115

(7) (8) (9) (10) (11)(20D) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20E)

17,115 100% 17,115 795,000 17,115 777,885 0 777,885 259,175 0 $ 220,550 220,550 38,625 100% 38,625 17,115

(7) (8) (9) (10) (11)(20E) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20F)

17,115 100% 17,115 795,000 17,115 777,885 0 777,885 259,175 0 $ 220,550 220,550 38,625 100% 38,625 17,115

10) Total of line 3a and line 4 of Part 2, Federal Form 706 11) Wisconsin State Death Tax Deduction
(line 20 from preceding column)

12) Subtract line (11) from line (10) 13) Nontaxable insurance / pensions 14) Taxable Amount Subtract line (13) from line (12) 15) Compute tentative tax on line (14) using Table A 16a) Line 7 of Part 2, Federal Form 706 b) Unified Credit as of 12-30-2000 c) Add lines (16a) and (16b) 17) Subtract line (16c) from line (15) 18) Percent of property in Wisconsin 19) Multiply line (17) by line (18) 20) WISCONSIN ESTATE TAX
(lesser of line (9) or (19), but not less than 0) Enter amount from line 20F on line 5 of Form W706
HT-006a (N. 12-05)

(12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20A)

795,000 0 795,000 265,850 0 $ 220,550 220,550 45,300 100% 45,300 17,800

(12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20B)

Wisconsin Department of Revenue

Form W706 ­ Schedule TC
Estate of:

Estate Tax Computation Schedule
For an estate when decedent's (resident or nonresident) date of death is on or after January 1, 2005 and not all the decedent's property is taxable to Wisconsin
Column A Column B
(1) (2) (3a) (3b)(20A)

Example 3
(1) (2) (3a)

B
Column F
(1) (2) (3a) (3b)(20E) (3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a) (11b)(20E) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20F)

SS#
1) Line 1 of Part 2, Federal Form 706 2) Line 3a of Part 2, Federal Form 706 3a) Other States Death Tax Deduction b) Wisconsin State Death Tax Deduction (line 20 from preceding column) c) Add lines (3a) and (3b) 4) Subtract line (3c) from line (2) 5a) Nontaxable insurance / pensions b) Exemption c) Add lines (5a) and (5b) 6) Adjusted taxable estate. Subtract line (5c) from line (4) 7) Compute Wisconsin Estate Tax on line (6) using Table B 8) Percent of property in Wisconsin (from Form W706 line 4) 9) Multiply line (7) by line (8) 10) Total of lines 3a and 4 of Part 2, Federal Form 706 11a) Other States Death Tax Deduction b) Wisconsin State Death Tax Deduction (line 20 from preceding column) c) Add lines (11a) and (11b) 12) Subtract line (11c) from line (10) 13) Nontaxable insurance / pensions 14) Taxable Amount Subtract line (13) from line (12) 15) Compute tentative tax on line (14) using Table A 16a) Line 7 of Part 2, Federal Form 706 b) Unified Credit as of 12-30-2000 c) Add lines (16a) and (16b) 17) Subtract line (16c) from line (15) 18) Percent of property in Wisconsin (from Form W706 line 4) 19) Multiply line (17) by line (18) 20) WISCONSIN ESTATE TAX (lesser of line (9) or (19), but not less than 0) Enter amount from line 20F on line 5 of Form W706
HT-006b (N. 12-05) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20A) (3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a)

Column C
(1) (2) (3a) (3b)(20B) (3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a) (11b)(20B) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20C)

Column D
(1) (2) (3a) (3b)(20C) (3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a) (11b)(20C) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20D)

Column E
(1) (2) (3a) (3b)(20D) (3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a) (11b)(20D) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20E)

5,500,000 5,350,000 350,000 350,000 5,000,000 0 $ 60,000 60,000 4,940,000 391,600 10.91% 42,724 5,350,000 350,000 350,000 5,000,000 0 5,000,000 2,390,800 0 $ 220,550 220,550 2,170,250 10.91% 236,774 42,724

5,500,000 5,350,000 350,000 42,724 392,724 4,957,276 0 $ 60,000 60,000 4,897,276 386,815 10.91% 42,202 5,350,000 350,000 42,724 392,724 4,957,276 0 4,957,276 2,367,302 0 $ 220,550 220,550 2,146,752 10.91% 234,211 42,202

5,500,000 5,350,000 350,000 42,202 392,202 4,957,798 0 $ 60,000 60,000 4,897,798 386,873 10.91% 42,208 5,350,000 350,000 42,202 392,202 4,957,798 0 4,957,798 2,367,589 0 $ 220,550 220,550 2,147,039 10.91% 234,242 42,208

5,500,000 5,350,000 350,000 42,208 392,208 4,957,792 0 $ 60,000 60,000 4,897,792 386,873 10.91% 42,208 5,350,000 350,000 42,208 392,208 4,957,792 0 4,957,792 2,367,586 0 $ 220,550 220,550 2,147,036 10.91% 234,242 42,208

5,500,000 5,350,000 350,000 42,208 392,208 4,957,792 0 $ 60,000 60,000 4,897,792 386,873 10.91% 42,208 5,350,000 350,000 42,208 392,208 4,957,792 0 4,957,792 2,367,586 0 $ 220,550 220,550 2,147,036 10.91% 234,242 42,208

5,500,000 5,350,000 350,000 42,208 392,208 4,957,792 0 $ 60,000 60,000 4,897,792 386,873 10.91% 42,208 5,350,000 350,000 42,208 392,208 4,957,792 0 4,957,792 2,367,586 0 $ 220,550 220,550 2,147,036 10.91% 234,242 42,208

(3c) (4) (5a) (5b) (5c) (6) (7) (8) (9) (10) (11a) (11b)(20A) (11c) (12) (13) (14) (15) (16a) (16b) (16c) (17) (18) (19) (20B)

9

Wisconsin Department of Revenue