HomeMy WebLinkAbout07-24-06COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TARES - -"' '" .-~,
INHERITANCE TAX DIVISION
PO BOX 280601
HARRISBURG PA 17128-0601
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BRIDGET M WHI1'LEY ESQ
KEEPER ETAL
PO BOX 11963
HBG PA 17108
INHERITANCE TAX
RECORD ADJUSTMENT
REV-1593 EX AFP (03-OS)
DATE 07-07-2006
ESTATE OF LAROCCA JELSIE C
DATE OF DEATH 09-16-2004
FILE NUMBER 21 05-0168
COUNTY CUMBERLAND
ACN 101
Anount Remitted
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 fora with your tax payment.
CUT ALONG THIS LINE -~ RETAIN LOWER PORTION FOR YOUR RECORDS 4-
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REV-1593 EX AFP (03-05) ** INHERITANCE TAX RECORD ADJUSTMENT *~
ESTATE OF LAROCCA JELSIE C FILE N0. 21 05-0168 ACN 101 DATE 07-07-2006
ADJUSTMENT BASED ON: PROTEST BOARD DECISION
VALUE OF ESTATE:
1. Real Estate (Schedule A) (1) .00
2. Stocks and Bonds (Schedule B) (2) 1,627.00
3. Closely Held Stock/Partnership Interest (Schedule C) (3) .00
4. Mortgages/Notes Receivable (Schedule D) (4) .00
5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) (5) 2,108.00
6. Jointly Owned Property (Schedule F) (6) .00
7. Transfers (Schedule G) (7) 115,000.00
8. Total Assets (8) 118,735.00
DEDUCT IONS AND EXEMPTIONS:
9. Funeral Expenses/Administrative Costs/
Miscellaneous Expenses [Schedule H) (9) 3, 142.00
10. Debts/Mortgage Liabilities/Liens (Schedule I) (10) 37,500.00
11. Total Deductions (11) 40, 642.00
12. Net Value of Tax Return (12) 78, 093.00
13. Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) (13) .00
14. Net Value of Estate Subject to Tax (14) 78 ,093.00
TAX:
15. Amount of Line 14 at Spousal rate (15) . 00 X 00 = . 00
16. Anount of Line 14 taxable at Lineal/Class A rate (16) 78,093.00 X 045= 3 ,514.19
17. Anount of Line 14 at Sibling rate (17) . 00 X 12 = . 00
18. Amount of Line 14 taxable at Collateral/Class B rate (18) .00 X 1 5 = .00
19. Principal Tax Due (19) 3 ,514.19
DATE NUMBER INTEREST/PEN PAID (-) AMOUNT PAID
02-16-2005 CD004967 .00 3,016.00
INTEREST IS CHARGED THROUGH 07-22-2006 TOTAL TAX CREDIT 3,016.00
AT THE RATES APPLICABLE AS OUTLINED ON THE BALANCE OF TAX DUE 498.19
REVERSE SIDE OF THIS FORM INTEREST AND PEN. 32.93
TOTAL DUE 531.12
* IF PAID AFTER DATE INDICATED, SEE REVERSE ( IF TOTAL DUE IS LESS THAN S1, NO PAYMENT IS REQUIRED. ~~~-
FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE
A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.)
BOARD OF APPEALS COMMONWEALTH OF PENNSYLVANIA
DEPT. ~i31021
HARRISBURG, PA 17128-1021 DEPARTMENT OF REVENUE
BRIDGET M WHITLEY ESQ
KEEPER WOOD ET AL
PO BOX 11963
HARRISBURG PA 17108-1963
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IN RE ESTATE OF:
venue
LAROCCA JELSIE C
DOCKET NO.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT;
PETITION FILED:
EXAMINER:
MAILING DATE:
0509619
Inheritance
Protest
2105-0168
101
5/16/2005
5/26/2005
DONNA E ALIMENT
Direct Dial: (717) 783-7894
Fax: (717) 787-7270
Email:daument@state.pa.us
June 30, 2006
DECISION AND ORDER
In its appraisement and assessment of the estate's inheritance tax return, the
Department assessed tax on the full $115,000.00 value of the Schedule G real estate,
explaining that, as the decedent had transferred the property to her children four years
before her death, "no settlement costs can be deducted from the contract sales price..."
The realty at issue was not transferred outright to the decedent's children as implied
by the Department. Petitioner explains that, shortly before the decedent applied for medical
assistance, she transferred her realty into a revocable trust. In granting immediate
assistance, the county assistance office failed to take the applicable disqualification period
into account. Petitioner contends the assertion of the Department of Public Welfare that it
could recoup the improperly made payments against the real estate was incorrect, but rather
than risk litigation, the trust beneficiaries conceded the argument in exchange for a
compromise of the dollar amount of its claim. Petitioner concludes that, as the trust
beneficiaries needed to sell the residence in order to pay that claim, the settlement
expenses incurred in its sale are deductible.
LAkOCCA JELSIE C
BOARD DOCKET NO. 0509619
Page 2 of 2
In Peterson Estate, 649 A.2d 1007 (Pa. Cmwlth. 1994), no deduction was permitted for
settlement costs as the estate received no benefit from the sale and the estate was not legally
obligated to liquidate the real estate nor assume the costs associated with the sale. The Court
stated "It is well settled that expenses necessarily incurred in preserving and distributing the
estate may be deducted and that expenditures not essential to the proper settlement of the
estate, but incurred for the benefit of the heirs, legatees, or devisees, may not be taken as
deductions."
In this case, it was not necessary to dispose of the real estate to preserve or distribute the
estate, as the real estate passed immediately upon the decedent's death to her children under
the terms of her revocable trust. The beneficiaries' negotiations with respect to the disputed
DPW claim also inured to their benefit. Therefore, it is the opinion of this Board that the closing
costs inure to the benefit of the heirs and are not chargeable against the general estate.
Accordingly, it is hereby Ordered that the protest is denied.
The appraisement and assessment shalt stand as filed.
FOR THE BOARD OF APPEALS
JOSEPH R. SLEEK, MEMBER
A STATEMENT OF ACCOUNT WILL BE MAILED TO YOU BY THE BUREAU OF
INDIVIDUAL TAXES.
ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT
WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION.
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 HEARING AND
SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).