Introduced Version
HOUSE BILL No. 1080
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 6-4.1-3-13
;
IC 6-4.1-5-1.5.
Synopsis: Inheritance tax deduction and valuation. Allows a deduction
from the value of property interests transferred by a resident decedent
equal to the amount of the decedent's interest in a qualified family
owned business deducted from the decedent's gross estate for federal
estate tax purposes under Section 2057 of the Internal Revenue Code.
Provides that the finally determined federal estate tax value of a
property interest is presumed to be the fair market value of the property
interest for Indiana inheritance tax purposes. (The introduced version
of this bill was prepared by the probate code study commission.)
Effective: July 1, 2000.
Weinzapfel
January 10, 2000, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 111th General Assembly (2000)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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HOUSE BILL No. 1080
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-4.1-3-13; (00)IN1080.1.1. -->
SECTION 1.
IC 6-4.1-3-13
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 13. (a) For purposes of
this section, the term "property subject to the inheritance tax" means
property transferred by a decedent under a taxable transfer.
(b) The following items, and no others, may be deducted from the
value of property interests transferred by a resident decedent under his
will, under the laws of intestate succession, or under a trust:
(1) the decedent's debts which are lawful claims against his
resident estate;
(2) taxes on the decedent's real property which is located in this
state and subject to the inheritance tax, if the real property taxes
were a lien at the time of the decedent's death;
(3) taxes on decedent's personal property which is located in this
state and subject to the inheritance tax, if the personal property
taxes are a personal obligation of the decedent or a lien against
the property and if the taxes were unpaid at the time of the
decedent's death;
(4) taxes imposed on the decedent's income to date of death, if the
taxes were unpaid at the time of his death;
(5) inheritance, estate, or transfer taxes, other than federal estate
taxes, imposed by other jurisdictions with respect to intangible
personal property which is subject to the inheritance tax;
(6) mortgages or special assessments which, at the time of
decedent's death, were a lien on any of decedent's real property
which is located in this state and subject to the inheritance tax;
(7) decedent's funeral expenses;
(8) amounts, not to exceed one thousand dollars ($1,000), paid for
a memorial for the decedent;
(9) expenses incurred in administering property subject to the
inheritance tax, including but not limited to reasonable attorney
fees, personal representative fees, and trustee fees;
(10) the amount of any allowance provided to the resident
decedent's children by
IC 29-1-4-1
; and
(11) the value of any property actually received by a resident
decedent's surviving spouse in satisfaction of the allowance
provided by
IC 29-1-4-1
, regardless of whether or not a claim for
that allowance has been filed under
IC 29-1-14
; and
(12) the amount of the decedent's interest in a qualified family
owned business deducted from the decedent's gross estate for
federal estate tax purposes under Section 2057 of the Internal
Revenue Code.
(c) The amounts which are deductible under subsection (b)(6) of
this section are deductible only from the value of the real property
encumbered by the mortgage or special assessment.
SOURCE: IC 6-4.1-5-1.5; (00)IN1080.1.2. -->
SECTION 2.
IC 6-4.1-5-1.5
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 1.5. (a) For purposes
of determining the fair market value of each property interest
transferred by a decedent, the appraisal date for the property interest is
the date used to value the property interest for federal estate tax
purposes. However, if no federal estate tax return is filed for the
decedent's estate, the appraisal date for each property interest
transferred by the decedent is the date of the decedent's death.
(b) The finally determined federal estate tax value of a property
interest is presumed to be the fair market value of the property interest
for Indiana inheritance tax purposes.
unless the federal estate tax value
is determined under Section 2032A of the Internal Revenue Code.
However, the presumption is rebuttable.
A property interest that is
valued for federal estate tax purposes under Section 2032A of the
Internal Revenue Code shall be valued for Indiana inheritance tax
purposes at its fair market value on the appraisal date prescribed by
subsection (a).
SOURCE: ; (00)IN1080.1.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2000]
IC 6-4.1-3-13
and
IC 6-4.1-5-1.5
, both as amended by this act, apply to the estates of
persons who die after June 30, 2000.