Attached to this assignment are threePDFsincluding the Form 706 Problem, selected portions of Form 706, and selected portions of the Form 706 instructions. I have attached only what you need to complete the assignments. Do the 709 problem first since you will need that information to complete the Form 706 Problem. Most schedules require minimal entries. The instructions to each problem indicate the portions of the forms to complete along with other necessary information. I have tried to minimize the entries to shorten the assignment. If you have never seen a Form 706 or Form 709, there will still be a sizable time commitment. The Form 706 should take longer to complete than the Form 709. The Form instructions, the lectures for this Module 1, and the material in Chapter 1 will provide enough information to complete both problems. You may, but should not need to refer to the other chapters in the text or other modules to complete these assignments. Print out the Form 706 and 709 and use the provided forms to complete the assignments. You may hand write your answers as long as they are legible. You may also go to the IRS Website where you can locatePDFsthat can be filled in.

706 Problem Assume that Sheldon from the 709 problem dies 10/21/2017. Assume also that the 2017 estate and gift tax rules and forms are identical to 2015. Sheldon died with the following assets: House $1,500,000 Cash 700,000 Corporate Bonds 400,000 Galaxy, Inc. Stock 800,000 Rental Property 200,000 All of the properties above are given to Amy, Sheldon's wife, in Sheldon's Will except for the bonds that go to Sheldon's four children (equally). The rental property goes to Amy by virtue of a joint ownership with right of survivorship between Sheldon and Amy (only). The rental property, therefore, is a qualified joint interest. All other properties are in Sheldon's name only. More assumptions: The annual gift tax exclusion amount is $14,000 The current year applicable exclusion is $5,250,000 Sheldon has made only one set of taxable prior gifts (2015 - See 709 Problem) Sheldon was married to Amy for the entire time through his date of death Sheldon and Amy have always been US citizens No valuation discounts were claimed Invent your own names, addresses (etc.), gift dates and CUSIPs No alternate valuation election is made No transfers are subject to generation skipping transfer tax No one filed a disclaimer Amy is the sole Executor of Sheldon's estate No state estate tax will be paid Use a $0 entry for Part 2, Lines 9b, 10, 13 and 14; Part 5, Line 23; and for Schedule M, Line 5(d) For Part 2, Line 7 use your entry for the 709 Problem, Line 17 The estate paid $8,000 in funeral expenses. The estate also paid $20,000 in legal fees and $42,000 in executor fees to administer the estate. All of these expenses were paid by the due date of the estate tax return. No reimbursements will paid to the Estate or to any heir for any of these expenses. Required: A. Work on your own to prepare a Federal Estate Tax return (Form 706 - you will need to prepare only Schedules A, B, C, E, J and M and parts 1, 2 and 5 of pages 1-4.) You must do the 709 problem first because it must be taken into account for this 706 problem. Forms and selected pages of the instructions are attached to this section of the module for your use. The full array of forms and instructions is available on the IRS website at www.irs.gov (See top bar on home page). Everything you will need to work this problem, however, is attached to this Module 1. B. If the Cosmos Stock given away in 2015 (valued at $6,000,000 at that time) is valued at $9,000,000 in 2017, does this change your answer to Part A? Explain in a one-paragraph written response - but no need to rework the Form 706. C. When is the Estate tax return (Form 706) due? Add your response to your response in Part B. 709 Problem Sheldon made the following gifts during 2015: $1,000,000 cash to Amy, his wife $6,000,000 in Cosmos Stock equally to Sheldon and Amy's four children ($1,500,000 each) $500,000 cash to Sheldon's church (a qualified charity) Assume the following: Sheldon has never made prior gifts Sheldon was married to Amy for the entire time through 2015 and neither was ever married previously Neither Sheldon nor Amy died during the year Sheldon and Amy have always been US citizens Do not make a split gift election No valuation discounts were claimed Invent your own names, addresses, gift dates, CUSIPs (etc.) No transfers are subject to generation skipping transfer tax (ignore Parts 2 and 3 of Schedule A and all of Schedule D) Do not prepare Schedule C Use a $0 entry for lines 8 and 10 The annual gift tax exclusion amount is $14,000 The current year applicable exclusion is $5,250,000 Required: Work on your own to prepare a 2015 Federal Gift Tax Return (Form 709). Prepare this Form 709 Problem before you do the Form 706 Problem. Try to minimize the gift tax. Forms and selected pages of the instructions are attached to this section of the module for your use. The full array of forms and instructions is available on the IRS website located at www.irs.gov (See top bar on home page). Indicate in your solution any other factual assumptions you made. The 709 instructions are very helpful. Everything you will need to work this problem, however, is attached to this Module 1