HomeMy WebLinkAbout12-17-12INHERITANCE TAX
CORDADJUSTMENT
BUREAU OF INDIVIDUAL TAXES RECORDED OFFICE ~~'
INHERITANCE TAX DIVISION
PD BDx 2BObo1 RE61ST'cR OF 's!i!..LS
HARRISBURG PA 1]128-0601
2L•?1 GEC 1? ACl li'i8
CLERKCF
ORPHANS' COUR1'
CUMBERLAND CO., PA
DANIEL J TAYLOR
121 COVENTRY DR
CARLISLE PA 17015-4507
Pennsylvania
~B~7 DEPARTMENT OF REVENUE
REV-1593 EX AFP (12-12)
DATE 12-11-2012
ESTATE OF TAYLOR MARTH
DATE OF DEATH 06-07-2010
FILE NUMBER 21 11-0171
COUNTY CUMBERLAND
ACN 101
Amount Remitted
MAKE CHECK PAYABLE AND REMIT PAYMENT T0:
REGISTER OF WILLS
1 COURTHOUSE SQUARE
CARLISLE PA 17013
NOTE: To ensure prpper credit to Your account, submit the upper portion of this form with Your Yax payment.
CUT ALONG THIS LINE ~l RETAIN LOWER~PORTION_FOR~YOUR RECORDS~_ l-~~~__~_________________
R EV-1593 EX AFP C12-12) ** INHERITANCE TAX RECORD ADJUSTMENT ^*
ESTATE OF: TAYLOR MARTH FILE N0.:21 11-0171 ACN: 101 DATE: 12-11-2012
ADJUSTMENT BASED ON: PROTEST BOARD DECISION
VALUE OF ESTATE: (17 .00
1. Real Estate CSChetlule A)
2. Stocks and Bonds (Schedule B) (2] .00
3. Closely Heltl Stock/Pa rt nershSp Interest (Sehetlule C7 (3) .00
4. Mortgages/Notes Receivable CSChetlule D) (47 .00
5 . Lash/Bank Deposits/Misc. Personal Property CSChetlule E) (5) 108.359.82
6 . Jointly Owned Property CSChetlule F) (6) 185.000.00
7 . Transfers (Schedule G) (77 3.675.22
(e) 297,035.04
8 . Total Assets
DEDUCTIONS AND EXEMPTIONS:
9 . Funeral Expenses/Administrative Costs/
Miscellaneous Expenses (Schedule H) C9) 15,905.40
(Schedule I) (107 171,380.21
30. Debts/Mortgage Liabilities/Liens
11. Total Deductions
12. Net Value of Tax Return
13. Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schetlule J)
14. Net Value of Estate Subject to Tax
TAX:
(117 187 , 285.61
(127 109,749.43
(137 • 00
(147 109,749.43
15. Amount of Line 14 at Spousal rate (15) .00X .00 •00
16. Amount of Line 14 taxable at Lineal/Class A rate (167 109,749.43X .045= 4,938.72
17. Amount of Line 14 at Sibling rate (17) .00X .12 = .00
18. Amount of Line 14 taxable at Collateral/Class B rate (187 ,00X .15 - .00
19. Principal Tax Due C19) 4,938.72
TAX CREDITS:
AVM NT ELE PT DI COUNT (+) AMOUNT PAID
DATE NUMBER INTEREST/PEN PAID (-)
INTEREST IS CHARGED THROUGH 12-26-2012x
AT THE RATES APPLICABLE AS OUTLINED ON THE
REVERSE SIDE OF THIS FORM
TOTAL TAX PAYMENT .00
IALANCE OF TAX DUE 4,938.72
INTEREST AND PEN. 267.28
TOTAL DUE 5,206.00
~ IF PAID AFTER DATE INDICATED, SEE REVERSE IF TOTAL DUE IS REFLECTED AS A ^LREDli^ :ux,, *~c ~~~ ~= y°° ~./LJ
FOR CALCULATION OF ADDITIONAL INTEREST. A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) V fl
s
BOARD OF APPEALS
P O Box 281021
HARRISBURG, PA 17128-1021
~ pennsylvania
DEPARTMENT OF REVENUE
BOARD OF APPEALS
DANIEL J TAYLOR
121 COVENTRY DR
CARLISLE, PA 17015
IN RE ESTATE OF:
TAYLOR MARTHA
DOCKET N0.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT:
PETITION FILED
EXAMINER:
1209370
Inheritance
Protest
2111-0171
101
3/12/2012
5/7/2012
JEFFREY HOLLENBUSH
Direct Dial: (717) 783-7891
Fax: (717)787-7270
Email:jhollenbus@pa.gov
December 5, 2012
MAILING DATE
DECISION AND ORDER
On March 12, 2012, the Department issued an appraisement and
assessment which indicated jointly held assets are taxable to survivors and no
deductions may be claimed against joint property, as it was not the
beneficiary's debt to pay. Subsequently, the Department issued a record
adjustment dated November 21, 2012 in which the Department assessed one-
half of the real estate or $185,000 and applied one-half of the mortgage or
$159,161.29. The Board notes the deed dated January 11, 2007 indicates
Daniel J Taylor and Lori Ann Taylor, husband and wife and Martha P Taylor,
joint tenants with right of survivorship.
Petitioner states the total home value is $370,000 and the mortgage
value at date of death is $318,323, thus the decedent's equity of the house is
$17,225.81 or decedent's aone-third equity interest. Petitioner's return as
TAYLOR MARTHA Page 2 of 3
BOARD DOCKET NO. 1209370
filed indicates decedent owned only cone-third interest in real estate and less
100% of the mortgage debt. Petitioner requests an explanation to the
appraisement and assessment of March 12, 2012.
First, the real estate at issue was held one-half by Daniel J Taylor and
Lori Ann Taylor husband and wife an undivided one-half interest, and one-half
by Martha P Taylor, not one-third by each. As the record adjustment issued
November 21, 2012 indicates the decedent held cone-half taxable interest, and
the Board concurs.
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 fifteen months 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 (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
Board of Appeals
PO Box 281021 I Harrisburg, PA 17128 1717.783.3664 I www.revenue.state.pa.us
Page 3 of 3
TAYLOR MARTHA
BOARD DOCKET N0. 1209370
it is adapted, sale prices of other comparable property in the vicinity, etc. In
this case, value of that real estate is $370,000 or the taxable value is $185,000
the decedent's one-half interest.
With regards to the mortgage deduction, Section 2126 of the Inheritance
and Estate Tax Act of 1991 states that deductions shall be allowed to a
transferee only to the extent that the transferee has actually paid the
deductible items and either the transferee was legally obligated to pay the
deductible items or the estate subject to administration by a personal
representative is insufficient to pay. Upon review of Departmental records the
record adjustment of November 21, 2012 reflects one-half of the mortgage has
been applied or $159,161.29. The Board concurs with this adjustment.
Accordingly, it is hereby, Ordered the protest is denied.
FOR THE BOARD OF APPEALS
LAUREN A. ZACCARELLI, CHAIR
ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS'
COURT WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION. A COPY OF
THE APPEAL SHOULD BE SERVED ON THE DEPARTMENT OF REVENUE, OFFICE
OF CHIEF COUNSEL, P.O. BOX 281061, HARRISBURG, PA 17128-1061.
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
AND SPEAKING NOEEDSO'.1 800-44753020 (1T ON y) WITH SPECIAL HEARING
Board of Appeals
PO Box 281021 I Harrisburg, PA 17128 1717.783.3664 I www.revenue.state.pa.us