top of page

Form 706-NA Estate Tax for Nonresidents not Citizens of the United States

Have over $60,000 in US assets? Then your estate will need to file a Form 706-NA and pay a tax ranging from 18-40%

Form 706-NA, or the United States Estate (and Generation-Skipping Transfer) Tax Return for Estates of Nonresident Not Citizens, is a tax form used by the Internal Revenue Service (IRS) in the United States to report the value of the estate of a nonresident not a citizen (NRNC) who has died. Form 706-NA is used to calculate the estate tax liability of an NRNC's estate and to determine whether any tax is due.

Form 706-NA is required to be filed by the executor or administrator of the NRNC's estate if the gross estate of the NRNC exceeds the applicable exclusion amount, which is the amount of the estate that is exempt from estate tax. The form is used to report the value of the NRNC's assets, such as real estate, personal property, and financial assets, as well as any debts and expenses.

If the date of death value of the decedent’s U.S.-situated assets, together with the gift tax specific exemption and the amount of the adjusted taxable gifts, exceeds the filing threshold of $60,000, the executor must file a Form 706-NA for the decedent’s estate. The filing threshold for Form 706-NA is not indexed for inflation.

Form 706-NA is typically filed within nine months of the NRNC's death, along with any required supporting documentation, such as appraisals of the NRNC's assets and proof of any debts or expenses. The form is used to help the IRS determine the estate's tax liability and ensure compliance with tax laws.

Written by John M Matras CPA MBA Copyright 2022. Tax news you can use is a feature to the subscribers of the app and JM Matras CPA Incorporated. All rights reserved.

2 views0 comments

Recent Posts

See All
bottom of page