HomeMy WebLinkAbout05-16-08__ COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
,, .:-.,
BUREAU OF INDIVIDUAL TAXES ~INH~RITANCE TAX
INHERITANCE TAX DIVISION - ~ ~~
Po Box zaosBl " ' RECDRD ADJUSTMENT
HARRISBURG PA ]7128-0601 REY-1593 EX AFP (03-05)
2~~8 i';r~l ~ ~ PJ p~ (f; ! (~ DATE 04-25-2008
ESTATE OF DYSERT HILDA S
~~`_~ :~ ~,,^ DATE OF DEATH 09-OS-2006
D~~r~a ;;J i .~~'~.~ FILE NUMBER 21 06-0809
TAYLOR P ANDREWS ESq C~Jf'A ~ '~ r; p~ COUNTY CUMBERLAND
ACN 101
78 W POMFRET ST
Amount Remittetl
CARLISLE PA 17013
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 farm with your tax payment.
CUT ALONG THIS LINE ---) RETAIN LOWER PORTION FOR YOUR RECORDS ~
REV-1593 EX AFP C03-05) ~* INHERITANCE TAX RECORD ADJUSTMENT ~x
ESTATE OF DYSERT HILDA S FILE N0. 21 06-0809 ACN 101 DATE 04-25-2008
ADJUSTMENT BASED aN: PROTEST BOARD DECISION
VALUE OF ESTATE:
1. Real Estate (Schedule A) (1) 672, 000.00
2. Stocks and Bonds (Schedule B) (2) 57,929.50
3. Closely Held Stock/Partnership Interest [Schedule C) (3) .00
4. Mortgages/Notes Receivable (Schedule D) C4) .00
5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) C5) 189,790.77
6. Jointly Owned Property (Schedule F) (6) .00
7. Transfers (Schedule G) (71 .00
e. Total Assets C8) 919,720.27
DEDUCT IONS AND EXEMPTIONS:
9. Funeral Expenses/Administrative Casts/
Miscellaneous Expenses (Schedule H) (9) 125,286.31
10. Debts/Mortgage LSabilities/Liens (Schedule I) C10) 318.95
11. Total Deductions C11) 125, 605.26
12. Net Value of Tax Return (12) 794, 115.01
13. Charitable/Governmental Bequests; Non-elected 9113 Trus ts (S chedule J) (13) 5,000.00
14. Net Value of Estate Subject to Tax (14) 789, 115.01
TAX:
15. Amount of Line 14 at Spousal rate C15) .00 X 00 = .00
16. Amount of Line 14 taxable at Lineal/Class A rate C16) .00 X 045= .00
17. Amount of Line 14 at Sibling rate C17) .00 X 12 = .00
18. Amount of Line 14 taxable at Collateral/Class B rate C18) 789,115.O1X 15 = 118, 367.25
19. Principal Tax Due (19) 118, 367.25
rev ro cnrrc.
DATE NUMBER INTEREST/PEN PALD (-) AMOUNT PAID
06-04-2007 CD008232 .00 123,968.25
TOTAL
123.968.
BALANCE OF TAX DUE 5,601.000R
INTEREST AND PEN. .00
TOTAL DUE 5,601.000R
~ IF PAID AFTER DATE INDICATED. SEE REVERSE C IF TOTAL DUE IS LESS THAN 81, NO PAYMENT IS REQUIRED.
FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" CCR)r YOU MAY BE DUE
A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.)
PAYMENT: Detach the top portion of this Notice and submit with your payment made payable to the name and address
printed on the reverse side.
If payment if for a RESIDENT DECEDENT, make check or money order payable to:
Regislcr oC Wills, Agent.
If payment if for a NON-RESIDENT DECEDENT, make check or money order nay able to:
Commenweallh of Pennsylvania.
Failure to pay the tax, interest, and penalty due may result in the filing of a lien of record in the
appropriate county, or the issuance of an Orphan's Court citation.
REFUND (CR): A refund of a tax credit, which was not requested on the fax Return, may be requested by com pl etins an
"Application for Refund of Pennsylvania Inheritance and Estate Tax" (REV-1313). Applications are available
online at www.re venue.st at e.pa.us, any Register of Wills or Revenue District Office, or from the Department's
24-hour an sweriny service far forms orders: 1-800-362-2050; services for taxpayers with special hearing and/or
speaking needs: 1-800-447-3020 CTT only).
REPLY
TD: puestions regarding errors contained on this notice should be addressed to: PA Department of Revenue, Bureau
of Individual Taxes, ATTN: Past Assessment Review Unit, P.O. Box 280601, Harrisbu rs. PA 17128-0601, Phone
(717) 787-6505.
OISP.DUNT: If any tax due is paid within three (3) calendar months after the decedent's death, a five percent (5%) discount
of the tax paid is allowed.
PENALTY: The 15% tax amnesty non-participation penalty as computed on the total of the tax and interest assessed, and not
paid hefore January 18, 1996, the first day after the end of the tax amnesty period.
INTEREST: Interest is charged beginning with first day of delinquency or nine (9) months and one (ll day from the date of
death tp the date of payment. Taxes which became delinquent before January 1, 1982 hear interest at the rate of
six (6%) percent per annum calculated at a da ilv rate of .000164. All taxes which became delinquent on and after
January 1, 1982 will bear interest at a rate which will vary from calendar year to calendar Year with that rate
announced by the PA Department of Revenue. Rates for years 1982 through 1999 can be found in the Pennsylvania
Resident Instruction Booklet, (REV-1501), the Pennsylvania Non-resident Instruction Booklet (REY-1736) or pn the
Pennsylvania Dept. of Revenue web site www.revenue. st at e.pa.us. The applicable interest rates For 2000 through 2008 are:
Interest ^aily Interest Daily Interest Daily
Year Rate Factgr Year Rate Factor Year Rate Factor
2000 8% .000219 2001 9% .000247 2002 6% .000164
2003 5% .000137 2004 4i .000110 2005 5% .000137
2006 7% .000192 2007 e% .000219 2(108 7: .000192
--Interest is calculated as follows:
INTEREST = BALANCE OF TAX UNPAID X NUMBER OF DAYS DELINQUENT X DAILY INTEREST FACTOR
--Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days
beyond the date of the assessment. if payment is made after the interest computation date shown on the
Notice, additional interest must he calculated.
BOARD U~PEALS
P O Box 281021
HARRISBURG, PA 17128-1021
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
TAYLOR P ANDREWS ESQ
78 W POMFRET ST
CARLISLE PA 17013-3216
IN RE ESTATE OF:
DYSERT HILDA S
DOCKET NO.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT
PETITION FILED
EXAMINER:
MAILING DATE:
DECISION AND ORDER
v'e `ru'e
0718470
Inheritance
Protest
2106-0809
101
8/6/2007
9/28!2007
JEFFREY HOLLENBUSH
Direct Dial: (717) 783-7891
Fax: (717)787-7270
Email:jhollenbus@state.pa.us
April 7, 2008
On August 6, 2007, the Department issued an appraisement and assessment which
disallowed the realtor's fees and transfer tax deductions claimed as items B-14 through B-
17 on Schedule H of the original inheritance tax return. The Department reasoned such
expenditures are not deductible unless the real estate has been sold. Petitioner now states
the real estate parcels have been sold and for less than the values reported on Schedule A.
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 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
,,
DYSERT HILDA S
BOARD DOCKET NO. 0718470
Page 2 of 3
(1976). They have also found that "...while the sale value may and should be considered, it is
not the only guide to be followed..." Jackson 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 it is adapted,
sale prices of other comparable property in the vicinity, etc.
The real estate situate at 58 E. Louther Street in Carlisle, Pennsylvania was sold in an
apparent arms-length transaction within one year of decedent's death. In the opinion of this
Board, the August 29, 2007 contract sales price of $175,000.00 is the best indication of that
property's fair market value at the time of decedent's death. Conversely, the real estate situate
at 909 Calvary Road in Carlisle was not sold within a year of death. Absent such a sale or a
bona fide appraisal, the taxable value of that real estate should be reduced to $145,000.00, the
value at which the property was actively marketed within a year of decedent's death.
Section 2127 of the Inheritance and Estate Tax Act of 1991, 72 P.S. § 9127, states all
reasonable expenses of administration of the decedent's estate and of the assets includible in
the taxable estate are deductible. As it was necessary to dispose of decedent's real estate to
effect distribution, the estate is entitled to an $18,780.00 deduction for the realtor's fees and
transfer tax costs incurred in the sale of the Louther Street and Calvary Road properties.
Accordingly, it is hereby, Ordered that the protest is sustained in-part. The Department
is directed to decrease the taxable values of the real estate reported as items 3 and 4 on
Schedule A to $145,000.00 and $175,000.00 respectively. The Department is also directed to
increase the allowable deduction for Schedule H administrative costs by $18,780.00.
FOR THE BOARD OF APPEALS
JOSEPH R. SLEEK, MEMBER
SERT HILDA S
OARD DOCKET NO. 0718470
rage 3 of 3
ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT
WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION.
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 HEARING AND
SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).