Form 706 filed for Portability only-Should expenses be itemized?

Forum|Forum|5 years ago
May 1, 2021
1 reply
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For 706 returns filed to elect Portability only, should Schedules J and K be left blank? An attorney I consulted says leave it blank. However, both the 706 instructions and Lacerte Diagnostics seem to indicate that expense amounts should be listed. If amounts are entered in Schedules J & K, then Part 5-Recapitulation line 21 Schedule M amount is negative of line 17 total and appears strange. Which is correct?

Lacerte Tax

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Best answer by KFCPA

Okay, I've now confirmed with two estate attorneys that when filing 706 for Portability only, leave expenses blank. (Don't fill out Schedules J & K). 706 instructions are poorly written IMHO.

P

PKCPAMST

Level 6

Per Form 706 instructions,

“Complete and file Schedule J if you claim a deduction on item 14 of Part 5—Recapitulation.”

“You must complete and attach Schedule K if you claimed deductions on either item 15 or item 16 of Part 5—Recapitulation.”

In other words, if you did not claim any deductions on items 14, 15 or 16 of Part 5 – Recapitulation, you do not have to complete Schedules J and K.

K

KFCPAAuthor

Level 3

Yes, that's what I thought, but I did wonder about the negative amount allocated to Schedule M (automatically allocated since Community Property state). Also, when I reached out to this prominent attorney who teaches 706 CPE classes, she said to leave blank on both items, 14-16 Part 5-Recapitulation as well as well as on Schedules J and K . Thanks for the confirmation.

K

KFCPAAuthorAnswer

Level 3

Okay, I've now confirmed with two estate attorneys that when filing 706 for Portability only, leave expenses blank. (Don't fill out Schedules J & K). 706 instructions are poorly written IMHO.

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