HomeMy WebLinkAbout09-18-09COMMDNWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES ,"' ~ rINHERITANCE TAX
INHERITANCE TAX DIVISION " " " '
PD eox zeo6sl - RECORD ADJUSTMENT
HARRISBURf PA 17128-0601 •- ~ ~ ~°^-~ REV-1593 EX AFP (01-09)
DATE 09-04-2009
~C~9 J~-~ ~ ~ ~-~{ I~• JZ ESTATE OF GOFF JR HARRY L
DATE OF DEATH 08-15-2fl07
;"~ !=`'!! ~'`~ FILE NUMBER 21 D7-0873
iL:_~~~~\ ~ -
~;: `fi'r' ^'" COUNTY CUMBERLAND
ANDREW C SHEELY E~1~ - ~ ~ ~~~; ACN 101
127 S MARKET ST Amount Remitted
PO BOX 45 "
MECHANICSBURG PA 17055 _... _____]
MAKE CHECK PAYABLE AND REMIT PAYMENT T0:
REGISTER OF WILLS
CUMBERLAND CO COURT HOUSE
CARLISLE, PA 17013
NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment.
CUT ALONG THIS LINE --• RETAIN LOWER PORTYON FOR YOUR RECORDS E'~-
REV-1593 EX AFP CO1-09) ~* IN4dERTTANCE TAX RECORD ADJUSTMENT' #*
ESTATE OF GOFF JR HARRY L FILE N0. 21 07-0873 ACN 101 DATE 09-04-2009
ADJUSTMENT BASED DN: BOARD OF APPEALS REFUND
VALUE OF ESTATE:
1. Real Estate (Schedule A) (1) 204,557.40
2. Stocks and Bonds (Schedule B) (2) 210,760.41
3. Closely Held Stock/Partnership Interest (Schedule C) (3) .DO
4. Mortgages/Notes Receivable (Schedule D) (4) .00
5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) C5) 15,320.54
6. Jointly Owned Property (Schedule F) C6) .00
7. Transfers (Schedule G) (7) 89,CFD1.21
s. Total Assets {B) 520, 039.56
DEDUCTIONS AND EXEMPTIONS:
9. Funeral Expenses/Administrative Costs/
Miscellaneous Expenses (Schedule H) (9) 16,434.90
10. Debts/Mortgage Liabilities/Liens {Schedule I) C10) 25,540.41
11. Total Deductions (il) 41,975.31
12. Net Value of Tax Return C12) _478,064.25
13. Charitable/Governmental Bequests; lion-elected 9113 Trusts (Schedule J) 0131 __,,, _,_ •00
14. Net Value of Estate Subject to Tax C 1~i ) 478, 064 a 25
TAX:
15. Amount of Line 14 at Spousal rate C15) . 00 X 00 ~ ,.~OG
16. Amount of Line 14 taxable at Lineal/Class A rate C16) _ 478__,.064.25 X 145= 21,'512.89.
17. Amount of Line 14 at Sibling rate C17) . 00 X 1. ;? _ . 00
18. Amount of Line 14 taxable at CollaterralJClass B rate C18) .00 X 3.5 = -_v .00
19, Principal Tax Due X3.9) _~ ?1,512.89,
IN/~ ~. I~CY11J
DATE
NUMBER
+
INTEREST_/PEN PAID (-)
~~ '
AMOUNT PAID
_
11-09-•2007 CD008940 1,075.64 20,500.00
05-].4-•2008 CD009722 .00 625.c57
TOTAL TAX CREDIT _ 2.2,201.3,1
BALANCE OF TAX DUE _ _ R_ 688.42CR~
INTEREST AND PEN. ~ .00
TOTAL DUE ~ 688.42CR ~
* IF PAID AFTER DATE INDICATED, SEE REVERSE C IF TOTAL DUE IS LESS THAN S1, NO PAYMENT IS REQUIRED.
FOR I:ALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT'° CCR), YO+J MAY BE DUE
A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.)
BOARD OF APPEALS
P O Box 281021
HARRISBURG, PA 17128-1021
pennsytvania ~
DEPARTMENT OF REVENUE
BQAHD OF APPEALS
ANDREW C SHEELY ESQ
127 S MARKET ST
PO BOX 95
MECHANICSBURG, PA 17055
IN RE ESTATE OF:
GOFF )R H
DOCKET NO.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT:
PETITION FILED:
EXAMINER:
MAILING DATE;
0910196
Inheritance
Refund
2107-0873
101
9/15/2008
4/29/2009
SHAWN E. YOUNG
Direct Dial: (717) 783-7894
Fax: (717} 787-7270
shyoung@state.pa.us
August 24, 2009
DECISION AND ORDER
On September 15, 2008, the Department issued an appraisement and
assessment that accepted the value of the decedent's real property at
$204,557.40 as reported on Schedule A of the original tax return. Petitioner
has filed a supplemental return which reduces the date of death value of the
decedent's real property at 3816 Carriage House Drive, Camp Hill from the
computed value of $204,557.40 to $200,000.00, based on the actual sale price.
Schedule I of the supplemental return also includes additional expenses and
costs incurred at settlement. Petitioner requests a refund based on the reduced
property value and the allowance of additional expenses and settlement costs.
For inheritance tax purposes, the value of real property is the fair market
value of the property at the time of the decedent's death. The Board of
Appeals has historically regarded an arms-length sale within a year of the
GOFF JR H Page 2 of 3
BOARD DOCKET NO. 0910196
decedent's death to be a good indicator of fair market value. A complete,
detailed, professional appraisal valuing real property at date of death is also
considered as evidence. Absent either a sale or an appraisal, the Department
has utilized the "computed value" approach based on the yearly findings of the
State Tax Equalization Board. Pennsylvania courts have found that ~~...after-
death sales of real estate are evidential as to date of death value..." Hofmann
Estate, 73 D & C 2d 489 (1976). They have also found that "...while the sale
value may and should be considered, it is not the only guide to be followed..."
.]ackson Estate, 4 D & C 550 (1955). In Jackson, the Court followed its
comment with a list of evidence 'tending to legitimately affect the value" such
as location, the interest of the decedent, the physical condition, uses for which
ht is adapted, sales prices of other comparable property in the vicinity, etc.
The value used in the September 15, 2008 assessment, $204,557.40,
was based on the assessed value for property tax, multiplied by the common
level ratio factor for Cumberland County for transactions recorded as of the
decedent's date of death. Petitioner provided a copy of the HUD-1 settlement
statement for the sale of the property for $200,000 on September 29, 2008,
<~nd a copy of the sales agreement dated August 18, 2008. It is the opinion of
this Board that the sale of the real property in September of 2008 occurred too
long after death to be considered a good indication of fair market value at the
tame of death, and that the value established by use of the property tax
assessment and the common level ratio factor as of the date of death is a more
accurate indication of the date of death value of the property.
Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us
GOFF JR H Page 3 of 3
BOARD DOCKET NO. 0910196
The payment of property tax obligations for the years after the decedent's
death inures to the benefit of the heirs, and is not a valid deduction for
inheritance tax purposes. The Board agrees that additional expenses and
settlement costs of $15,485.00 should be allowed as expenses of estate
administration.
Accordingly, it is hereby Ordered that the protest is sustained in part.
The Department is directed to increase Schedule I to $25,540.41. It is
furthered Ordered that a refund be issued for any resulting overpayment, plus
interest if appropriate.
FOR THE BOARD OF APPEALS
LAUREN A. ZACCARELLI, CHAIR
ANY APPEAL FROM THIS DECISION MUST BE FILED ON OR BEFORE NOVEMBER
23, 2009 WITH THE BOARD OF FINANCE AND REVENUE, 1101 SOUTH FRONT
STREET, SUITE 400, HARRISBURG, PA 17104, TELEPHONE (717) 787-2974.
ANY APPLICABLE NOTICE REFLECTING ANY CHANGES TO THE ACCOUNT
PURSUANT TO THE BOARD'S DECISION AND ORDER MAY BE MAILED TO YOU
BY THE APPROPRIATE BUREAU.
IF YOU REQUIRE THIS INFORMATION IN AN ALTERNATE FORMAT UNDER THE
PROVISIONS OF AMERICANS WITH DISABILITIES ACT OF 1990, PLEASE CALL
(717) 783-3664, OR FOR SERVICES FOR TAXPAYERS WITH SPECIAL NEARING
.AND SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).
Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us