2020 ProSeries/706 ReadMe

Version: 2020.020 / February 12, 2021

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All 706 Forms can be filed

All forms in this release of ProSeries/706 can be filed with the IRS.

What's new in ProSeries/706

For information on what's new in ProSeries/706, open a 706 return, go to the Help menu, select Help Center, then select What's New This Year?

Tax legislation issues

The IRS has issued Form 706 and instructions for estates of decedents dying after December 31, 2019, and before January 1, 2021. They point to the following changes:

• The basic credit amount is $4,577,800.
• The basic exclusion amount is $11,580,000.
• The ceiling on special-use valuation is $1,180,000.
• The amount used in figuring the 2% portion of estate tax payable in installments is $1,570,000.
• Interest computation threshold $628,000.

How to Use ProSeries/706

If you are just getting started with ProSeries/706, the How to Use ProSeries/706 guide will answer your basic questions on preparing estate tax returns. To see this guide, open a new or existing Form 706 return, go to the Help menu, choose Help Center, then choose How to Use ProSeries/706.

Note the following:

• If you used the prior year ProSeries/706 product to prepare a preliminary Form 706 return for a decedent who died in the current year, start by transferring the decedent's information from the prior year ProSeries/706 client file to a new current year ProSeries/706 client file.
  1. Start your 2020 ProSeries program.
  2. While in HomeBase, go to the toolbar and click the 19 --> 20 Transfer button.
  3. In the Transfer window, go to Select the Types of Files to Transfer field and select 2019 Form 706 to 2020 Form 706.
  4. Make sure the Transfer Data Files From field and the Transfer Data Files To field identify the appropriate drive and directory.
  5. Select the prior year ProSeries/706 client file that contains the data that you want to transfer.
  6. Click the Transfer button to begin the transfer procedure.

• If you used the prior ProSeries/709 product for the decedent, start by transferring the decedent's data from the prior year ProSeries/709 client file to a new current year ProSeries/709 client file.
  1. Start your current year ProSeries program.
  2. While in HomeBase, go to the toolbar and click the 20 --> 20 Transfer button.
  3. In the Transfer window, go to Select the Types of Files to Transfer field and select 2020 Form 709 to 2020 Form 706.
  4. Make sure the Transfer Data Files From field and the Transfer Data Files To field identify the appropriate drive and directory.
  5. Select the prior year ProSeries/709 client file that contains the data that you want to transfer.
  6. Click the Transfer button to begin the transfer procedure.

Don't transfer data to a current year ProSeries/706 client file from more than one client file. Don't transfer data from a prior year ProSeries/706 client file and a current year ProSeries/709 client file to the same current year ProSeries/706 client file. The transfer procedure always deletes existing data from a client file before transferring data from the file that you selected. If you transfer data from a prior year ProSeries/706 client file to a current year ProSeries/706 client file and then you transfer data from a current year ProSeries/709 client file to that current year ProSeries/706 client file, the program will delete the data that you transferred from the current year ProSeries/706 client file before it transfers data from the current year ProSeries/709 client file.

• Complete the U.S. Estate Tax Return Information Worksheet. Note the following:
• The expanding table in the Executor(s) Information section allows you to enter information for multiple executors.
• Be sure to select a Primary Executor by checking the Primary Executor for tax return & contact box for one executor. ProSeries will enter the information for that executor on client letters and in various areas of the tax return.
• Although the IRS removed the reference to tax relief under Section 2201 from the 2002 and later Form 706 instructions, Section 2201 is still available for decedents narrowly defined. Checking the Section 2201 election allows the program to incorporate the lower tax rates of Section 2201(c).

• When you complete the U.S. Estate Tax Return Information Worksheet, click the QuickZoom button at the bottom of the worksheet to go to Form 706, page 1.

• The Estate Tax Estimator Worksheet is a planning tool to be used as follows:
• Use the Estate Tax Estimator Worksheet to estimate the estate's tax liability during an initial review of the estate or even during the preparation process, and
• If applicable, use the Estate Tax Estimator Worksheet to determine the allocation of taxes to reduce the marital and charitable deductions through a cycle of interrelated calculations.
• The first time you open the Estate Tax Estimator Worksheet, if there's information on Form 706, the program flows that information to the worksheet. If you prefer, you can enter amounts directly on the worksheet.
• After you complete Form 706 and its related schedules, open the worksheet, then go to the Forms menu and choose Remove Tax Estimator to delete the information from the form.
• Open the Estate Tax Estimator Worksheet again. The program will recalculate the worksheet using the current amounts from Form 706 and its schedules.

Multi-Row tables

ProSeries/706 includes multi-row tables that support efficient data entry on the Form 706 schedules. Multi-row tables offer the following editing features:

• Automatic word wrap within a field
• Forced word wrap within a description field using the SHIFT+ENTER keys
• Insert and delete rows within a table using the Edit menu
• Navigation across a row using the TAB and ENTER keys
• Navigation down a column using the arrow keys

For detailed information about the use of multi-row tables, see the Tax Help for ProSeries/706.

Note: ProSeries/706 prints continuation pages on a formatted page that mirrors the IRS schedule being used.