§ 14051.1. Computation.
18 CA ADC § 14051.1Barclays Official California Code of Regulations
18 CCR § 14051.1
§ 14051.1. Computation.
If the entire present estate does not pass to a single Class A transferee, it is necessary to give to each Class A transferee his proper proportion of the maximum credit. This is the same proportion of the maximum credit as the clear market value of the property transferred to the particular Class A transferee bears to the total clear market value of the present decedent's taxable estate.
In determining the clear market value of the property transferred to a transferee or of the entire estate, the following are deducted:
This regulation may be illustrated by the following example:
Example. A died on January 6, 1974. The inheritance tax was computed as follows:
Inventory (all separate property) | $110,000 | ||
Deductions | 5,000 | ||
Clear market value | $105,000 |
Adult Son
Bequest | $15,000 | |||
One-third residue | 30,000 | $5,000 exempt |
$45,000 | Tax on balance | $1,400 |
Widow
Two-thirds residue | $60,000 | $5,000 exempt | ||
52,500 | Marital exemption |
Tax on balance | 150 | |||
$1,550 |
The adult son died November 4, 1975. He left probate property appraised at $65,000. There were $5,000 of deductions. His estate was divided equally between his adult son and his son's wife.
The calculation of the inheritance tax due is as follows:
Inventory | $65,000 | ||
Deductions | 5,000 | ||
Clear market value | $60,000 |
Adult Son
One-half residue | $30,000 | $5,000 exempt |
Tax on balance | $800 | |||
P.T.P. credit | 700 | |||
$100 |
Daughter-in-law
One-half residue | $30,000 | $2,000 exempt |
$60,000 | Tax on balance | $1,880 | ||
$1,980 |
The calculation of the previously taxed property credit is as follows:
Class A transferee: Adult son in each estate Tax paid by present decedent in prior estate | $1,400 | |
Clear market value of transfers to Class A transferees from present decedent | 30,000 | |
Clear market value of present decedent's estate | 60,000 | |
30,000/60,000 x $1,400 = $700 P.T.P. Credit |
Note: Reference: Section 14071, Revenue and Taxation Code.
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 18, § 14051.1, 18 CA ADC § 14051.1
End of Document |