reglab/statecodes huggingface dataset:
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6 - Valuation › Section 13957 - Open-Space Land

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In determining fair market value of open-space land
					 qualified under Revenue and Taxation Code Section
					 421
					 (Land Conservation Act), recognition shall be given to the existence of an
					 enforceable restriction under Revenue and Taxation Code Section
					 422
					 as one of the factors to be taken into account.
Chapter 1453 , Statutes of 1970, provides a temporary
					 statutory exception to fair market value in the case of such land, applicable
					 where the decedent died on or after September 19, 1970 and prior to January 1,
					 1975, at the option of the personal representative of the estate or transferee
					 of the land provided there are less than five sales of land qualifying as
					 comparable. In that event any such land which is subject to inheritance tax
					 shall be valued by the inheritance tax appraiser for inheritance tax purposes
					 by the identical methods required by Revenue and Taxation Code Sections
					 423
					 and
					 423.5
					 when County Assessors are valuing open-space land for property tax
					 purposes.
NOTE: Reference: Section
					 13957,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13982 - Apportionment of Deductions-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If a decedent leaves property to two or more persons, the
					 deductions specified in the Inheritance Tax Law will ordinarily be prorated
					 against the market value of the property to which each such person is entitled,
					 according to the ratio between such value and the market value of all property
					 in the decedent's estate. However, if for any reason the property left to a
					 particular transferee is not chargeable with the payment of the items for which
					 deductions are permissible, no portion of the deductions may be allowed against
					 such property.
NOTE: Reference: Section
					 13982,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13982.1 - Nonresident Decedent

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Where a nonresident decedent leaves assets in California,
					 the transfer of which is taxable under the Inheritance Tax Law, no deduction is
					 allowed for debts, expenses of administration, or funeral expenses incurred at
					 the place of residence, if the decedent has no creditors in California and his
					 assets at his place of residence are sufficient for the payment of such debts
					 and expenses. If, however, the assets at the decedent's place of residence are
					 insufficient for the payment of the debts and expenses there incurred, such
					 portion of such debts and expenses as is necessarily paid from the California
					 assets is allowable.
NOTE: Reference: Section
					 13982,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13983 - Unsecured Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If paid by the decedent's estate or the transferee of the
					 property, the unpaid amount of any bona fide, allowable, and legally
					 enforceable unsecured debt of a decedent existing at the time of his death,
					 together with any interest thereon which had accrued at the time of death, may
					 be deducted from the market value of property transferred by the
					 decedent.
Any tax which is not deductible under Revenue and Taxation
					 Code Section
					 13987,
					 relating to state, county, and municipal taxes which are a lien against
					 property included in any transfer subject to the Inheritance Tax Law, but which
					 was a personal obligation of the decedent at the date of his death and is paid
					 by the decedent's estate may be deducted as a debt of the decedent under
					 Revenue and Taxation Code Section
					 13983.
NOTE: Reference: Section
					 13983,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13983.1 - Secured Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  In General.
If paid by the decedent's estate or the transferee of the
					 property, the unpaid amount of any bona fide, allowable, and legally
					 enforceable debt of a decedent existing at the time of his death, together with
					 any accrued interest thereon at the time of death, which is secured by a
					 mortgage or other lien on any property included in any transfer subject to the
					 Inheritance Tax Law made by the decedent, may be deducted from the market value
					 of the property. A like deduction is permissible for any such obligation not
					 paid by the decedent's estate or the transferee, where the property affected by
					 the mortgage or other lien is distributed to the transferee subject to the
					 mortgage or other lien. A debt of the decedent which is secured by a mortgage
					 or other lien on property situated outside the State of California or on any
					 other property which is not subject to the Inheritance Tax Law is not
					 deductible. Also, a secured obligation which is paid out of mortgage insurance
					 is not deductible.
(b)
				  Decedent Not Personally Liable.
If the decedent was not personally liable at the time of
					 his death for a debt secured by a mortgage or other lien on property
					 transferred by him, no deduction will be allowed for any payment of the debt by
					 the estate or the transferee. However, if the particular property is
					 distributed to the transferee subject to the mortgage or other lien, the unpaid
					 amount of the debt at the date of the decedent's death, together with interest
					 accrued thereon at that time, may be deducted from the market value of the
					 property.
NOTE: Reference: Section
					 13983,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13983.2 - Joint and Several Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Ordinarily, only one-half of the amount of the unpaid
					 portion of a joint and several obligation of the decedent and another person is
					 allowable as a deduction in the decedent's estate, where the decedent and such
					 other person received equal benefits from the consideration received for the
					 obligation.
If in fact the decedent was the principal obligor of a
					 joint and several obligation entered into between himself and another, the
					 latter being a mere surety on the obligation, the entire amount of the unpaid
					 portion of the obligation is allowable as a deduction. On the other hand, if
					 the decedent was the surety and the other person the principal obligor, no part
					 of the obligation is ordinarily allowable.
NOTE: Reference: Section
					 13983,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13983.3 - Contingent Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A contingent obligation of a decedent is not allowable as a
					 deduction until the contingency occurs.
NOTE: Reference: Section
					 13983,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13983.4 - Outlawed Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An obligation of a decedent on which the statute of
					 limitations had run on or prior to the date of the death of the decedent is not
					 allowable as a deduction.
NOTE: Reference: Section
					 13983,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13986 - Expenses of Funeral and Last Illness

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General. Except as otherwise indicated
				  in this regulation, funeral and last illness expenses of a decedent are
				  allowable as deductions from the market value of property transferred by the
				  decedent, if:
(1) The expenses were
				  obligations of the decedent or his estate; and
(2) They were paid by the estate or the
				  transferee of the property after the decedent's death.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13987 - State and Local Taxes and Assessments-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Except as otherwise indicated in this regulation and
					 Section
					 13987.1,
					 any tax or assessment levied by the State of California, or by any county, city
					 and county, city, or district thereof, is allowable as a deduction from the
					 market value of the property, if it was a lien at the date of decedent's death
					 against property included in any transfer subject to the Inheritance Tax Law
					 made by the decedent.
Interest on such a tax which accrued prior to the date of
					 death is also deductible, but interest which accrues on or after the date of
					 death is not deductible.
A tax on property situated outside the State of California
					 or on any other property which is not subject to the Inheritance Tax Law is not
					 deductible.
NOTE: As to the deduction of a tax which is not a lien at
					 the date of decedent's death against property included in any transfer subject
					 to the Inheritance Tax Law, see Section
					 13983.
NOTE: Reference: Section
					 13987, Revenue and Taxation
					 Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13987.1 - California Inheritance Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The amount of the California inheritance tax paid or
					 payable by any transferee of property is not allowable as a deduction. However,
					 if the decedent was a recipient of property left by a predeceased person, and
					 had failed to pay any California inheritance tax on the transfer prior to his
					 death, the amount of the tax which was a lien on the property at the date of
					 his death, together with any interest then accrued thereon, may be allowed as a
					 deduction.
NOTE: Reference: Section
					 13987,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13987.2 - Gift Taxes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In
				  General. In those cases where a decedent made a lifetime gift before January 1,
				  1977 which is also subject to inheritance tax, a gift tax credit is allowable
				  against the inheritance tax on the lifetime gift (see Revenue and Taxation Code
				  Sections
				  14071-
				  14077).
				  The gift tax credit is allowable regardless of whether the gift tax is paid
				  before or after the death of the donor. Gift tax paid after the donor's death
				  for which no gift tax credit is allowed against the inheritance tax is treated
				  as a debt of the decedent and allowed as a deduction for inheritance tax
				  purposes.
(b) California Gift Tax.
				  If a California gift tax is paid after the donor's death for which a gift tax
				  credit is allowed, the amount of gift tax paid is not allowable as an
				  inheritance tax deduction to the extent that the gift tax credit is allowed
				  (see Section
				  14071). The full amount of the
				  gift tax paid after death is allowed as an inheritance tax deduction if the
				  lifetime transfer for which the gift tax is due is not also subject to
				  inheritance tax and the gift tax is paid from assets of the decedent's estate.
				  In any case, penalty and interest which had accrued as of the date of death is
				  allowed as a deduction if it is paid after death from assets of the decedent's
				  estate.
(c) Federal Gift Tax. If a
				  federal gift tax is paid after the donor's death for which a gift tax credit is
				  allowed against the federal estate tax, the amount of gift tax paid is not
				  allowable as an inheritance tax deduction to the extent the gift tax credit is
				  allowed. The full amount of the federal gift tax paid after the death of the
				  donor is allowed as an inheritance tax deduction if the gift for which the gift
				  tax is due is not also subject to federal estate tax and the gift tax is paid
				  from assets of the decedent's estate. In any case, penalty and interest which
				  had accrued as of the date of death is allowed as a deduction if it is paid
				  after death from assets of the decedent's estate.
1. Amendment
					 of subsection (a) filed 7-2-81; effective thirtieth day thereafter (Register
					 81, No. 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						13987. Revenue and Taxation
						Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988 - Compensation of Executor Provided by Will

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If a decedent by will has provided for the compensation of
					 the executor of his will, and the executor does not waive or renounce his claim
					 thereto by a written instrument filed in court, no deduction for the statutory
					 commission under Section
					 901 of the Probate Court is
					 allowable as an expense of administration. It is to be noted, however, that in
					 such case only that portion of the compensation left by will which exceeds the
					 statutory commission is subject to taxation under the Inheritance Tax Law (see
					 Section
					 13603
					 and Revenue and Taxation Code Section
					 13603).
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.1 - Executor or Administrator Who Acts as His Own Attorney

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Deduction of executor's commissions and attorney's fees
					 actually paid or to be paid from funds of the estate up to the amount allowed
					 by statute on the principal of the decedent's estate shall be allowed in cases
					 where the executor or administrator acts as his own attorney or employs a law
					 firm of which he is a member, subject to the provisions of Revenue and Taxation
					 Code Section
					 13981,
					 limiting deductions to items which actually reduce the amount of the
					 inheritance or transfer.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.2 - Statutory Commissions and Fees on Community Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In regard to community property the ordinary commissions
					 and fees allowed the executor or administrator and the attorney for the
					 executor or administrator under Sections
					 901 and
					 910 of the
					 Probate Code are computed on the amount subject to administration.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.3 - Nondeductible Statutory Commissions and Fees

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The amounts deductible for ordinary commissions allowed the
					 executor or administrator under Section
					 901 of the
					 Probate Code and for ordinary fees allowed the attorney for the executor or
					 administrator under Section
					 910 of that Code are the
					 commissions in effect pursuant to Section
					 901 at the date of the decedent's
					 death. Accordingly, if decedent died prior to September 7, 1955, the increased
					 commissions allowed by the amendment to Section
					 901 effective on that date are not
					 deductible.
Statutory commissions and fees allowed an executor or
					 administrator and the attorney for the executor or administrator based on
					 income of the estate during administration are not deductible.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.4 - Losses on Sale of Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A deduction is allowable for losses suffered when the net
					 proceeds realized from the sale of decedent's property is less than the
					 appraised value of the property provided the sale was directed by the
					 decedent's will, the sale was necessary in order to raise funds to pay taxes,
					 debts, or costs of administration, or the property was taken in a condemnation
					 proceeding.
The amount of the deduction is the difference between the
					 appraised value of the property and the net amount realized on the sale. In
					 determining the net amount realized, the expenses of sale, such as escrow
					 charges, real estate agent's commissions, attorney's fees, and costs of
					 proceedings, are deducted from the sale price.
If the net amount realized is greater than the appraised
					 value, no deduction of any kind relating to the sale is allowable. In such a
					 situation the costs of sale are not deductible.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.5 - Miscellaneous Deductible Expenses of Administration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Included among ordinary expenses of administration and thus
					 allowable as deductions against the market value of property transferred by
					 decedent are the following:
(a) The
				  cost of the executor's or administrator's bond for every year it remains in
				  force. The maximum for this item is $10 for a bond in the amount of $2,000 or
				  less, and one-half of 1 percent of the amount of any bond in excess of
				  $2,000.
(b) The usual and necessary
				  probate court costs.
(c) The fee
				  and actual and necessary expenses of the inheritance tax referee under Section
				  609 of the
				  Probate Code.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6.1 - Deductions › Section 13988.6 - Nondeductible Expenses of Administration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Except to the extent permitted by Revenue and Taxation Code
					 Section
					 13988.1,
					 extraordinary expenses of administration are not allowable as deductions.
					 Included among such nondeductible expenses are the following:
(a) Expenses, including attorney's fees and
				  costs of proceedings, incurred in connection with contests or litigated claims
				  against the estate or in connection with will contests.
(b) Expenses, excluding attorney's,
				  executor's, administrator's, and accountant's fees, for prosecuting objections
				  to the report of the inheritance tax referee.
(c) Expenses of sale of property, such as
				  escrow charges, real estate agent's commissions, attorney's fees, and costs of
				  proceedings. However, such expenses are subtracted from the sales price to
				  determine the net proceeds of sale when the sale is directed by the decedent's
				  will, the sale is necessary to raise funds to pay taxes, debts, or costs of
				  administration, or the property is taken in a condemnation proceeding (see
				  Section 13988.4).
(d) Referee's fees on reappraisals for sale
				  purposes.
(e) Expenses during
				  administration for costs of maintenance, fire insurance costs, gardener or
				  caretaker's salary, or repairs and additions to the property.
(f) Expenses relative to carrying on
				  decedent's business pursuant to court order.
(g) Travel expenses of the executor or
				  administrator or his attorney, except travel expenses of executor (one-way
				  only) in coming to California to qualify.
(h) Extraordinary attorney's fees for
				  services in connection with litigation or conferences in resisting a federal
				  income tax deficiency claim.
(i)
				  Extraordinary attorney's fees except to the extent such fees are deductible
				  under Revenue and Taxation Code Section
				  13988.1
				  for tax work or joint tenancy.
(j)
				  Extraordinary executor's or administrator's fees except to the extent such fees
				  are deductible under Revenue and Taxation Code Section
				  13988.1
				  for tax work.
NOTE: Reference: Section
					 13988,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 7 - Previously Taxed Property Credit › Section 14051 - Previously Taxed Property Credit-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A credit for inheritance tax paid in the estate of a prior
					 decedent is allowed where the present decedent was a Class A transferee (see
					 Revenue and Taxation Code Section
					 13307)
					 in respect to the prior decedent, and the present transferee is a Class A
					 transferee in respect to the present decedent, if the date of death of the
					 second decedent is not more than five years after the date of death of the
					 first decedent.
The previously taxed property credit is a credit against
					 and deducted from the Class A transferee's tax. The amount of the credit is
					 limited to the proportion of the maximum credit available which the clear
					 market value of the property transferred to a Class A transferee in the present
					 estate bears to the total clear market value of the present decedent's taxable
					 estate. The amount of tax paid by the present decedent in the prior estate is
					 the maximum amount of credit.
If an additional tax under Revenue and Taxation Code
					 Section
					 13441
					 or
					 13442
					 is due in either the first or second estate, the previously taxed property
					 credit is not allowable.
NOTE: Reference: Section
					 14051,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 7 - Previously Taxed Property Credit › Section 14051.1 - Computation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) No tracing of
				  the property is required to establish the allowance of the previously taxed
				  property credit. The only factor which needs to be ascertained is the amount of
				  tax paid by the present decedent in the prior estate. This is the maximum
				  amount of the credit.
If the entire present estate does not pass to a single
					 Class A transferee, it is necessary to give to each Class A transferee his
					 proper proportion of the maximum credit. This is the same proportion of the
					 maximum credit as the clear market value of the property transferred to the
					 particular Class A transferee bears to the total clear market value of the
					 present decedent's taxable estate.
In determining the clear market value of the property
					 transferred to a transferee or of the entire estate, the following are
					 deducted:
(1) Community
				  exclusion.
(2) Quasi-community
				  exclusion.
(3) Marital exclusion in
				  the case of a decedent with a date of death on or after January 1,
				  1976.
(4) Contribution to joint
				  tenancy.
(5) Insurance
				  exclusion.
(6) Intangible
				  exclusion.
(7) Deductions allowed
				  under the Inheritance Tax Law.
(8)
				  Nontaxable property, such as cemetery property and public retirement
				  benefits.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8 - Payment of Tax › Section 14104 - Place, Manner, and Medium of Payment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every tax imposed by the Inheritance Tax Law must be paid
					 by the person liable for the tax (see Revenue and Taxation Code Section
					 14101)
					 to the Controller by remittance payable to the State Treasurer. Payment of the
					 tax may be made in legal tender of the United States, or by a negotiable check,
					 draft, or money order payable to the order of the State Treasurer. The
					 acceptance by the Controller of a check, draft, or money order constitutes a
					 payment of the tax for which it was given as of the date of acceptance when,
					 but not before, such paper is actually paid.
The mere earmarking of real property to be held or sold for
					 the payment of taxes does not constitute a payment of such
					 taxes.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14104,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8 - Payment of Tax › Section 14104.1 - Payment Prior to Order Fixing Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Controller may accept any payment of tax in any case
					 where the tax has not been fixed by order of the superior court. Any such
					 payment which is accepted will be deemed to have been made as a payment on
					 account and subject to the provisions of the subsequent order fixing
					 tax.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14104,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.1 - Tax Receipt › Section 14143 - Consent to Preliminary Distribution

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The State Controller, or the inheritance or any assistant
					 inheritance tax attorney of the Inheritance Tax Department of the State
					 Controller's office, is authorized to give his consent in writing to a
					 preliminary distribution of property in the estate of any decedent prior to the
					 payment of any inheritance tax due on the transfer thereof. In requesting such
					 consent, a copy of the petition for distribution should be submitted to the
					 person whose consent is requested.
NOTE: Additional reference: Section
					 1001, Probate
					 Code.
NOTE: Reference: Section
					 14143,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.1 - Tax Receipt › Section 14143.50 - Agreement for Payment of Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Controller is authorized to enter into an agreement for
					 payment of the inheritance tax upon his finding that payment as a prerequisite
					 to distribution of the estate would result in undue hardship (see Revenue and
					 Taxation Code Sections
					 14105
					 and
					 14143.5).
(a) Undue Hardship. "Undue hardship" as used
				  in this connection means more than an inconvenience to the estate. It must
				  appear that:
(1) the transferee (or
				  transferees) of the estate is unable to secure a loan against the property
				  transferred at a rate of interest specified in Revenue and Taxation Code
				  Section
				  14211
				  or less, and
(2) that a substantial
				  financial loss, for example, due to the sale of the property at a sacrifice
				  price, will result from payment of inheritance tax as a prerequisite to
				  distribution, and
(3) that, except
				  in the case of qualified family property (see Revenue and Taxation Code Section
				  14143.5),
				  the estate will suffer a substantial financial loss if distribution is not
				  made.
If a market exists, a sale of property at the current
					 market price is not ordinarily considered as resulting in an undue hardship.
					 The necessity for selling an interest in a qualified family property (see
					 Revenue and Taxation Code Section
					 14143.5),
					 which is included in the estate, to unrelated persons will be considered to be
					 an undue hardship even though the interest could be sold at a price equal to
					 its current fair market value.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.2 - Deferment of Payment › Section 14171 - Contingencies

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
See Section
					 13411 for other provisions dealing
					 with the taxation of contingencies.
NOTE: Reference: Section
					 14171,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.3 - Tax Compromises › Section 14191 - Contingencies

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
See Section
					 13411 for other provisions dealing
					 with the taxation of contingencies.
NOTE: Reference: Section
					 14191,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.3 - Tax Compromises › Section 14211 - Interest on Delinquent Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Generally. Any tax imposed by the
				  Inheritance Tax Law which becomes delinquent (see Section
				  14103) will bear interest from the
				  delinquent date to the date the tax plus accrued interest is paid in full.
				  Except as provided in Revenue and Taxation Code Section
				  14212
				  (see Section
				  14212), there is no relief from
				  accrued interest for a late payment of the inheritance tax.
(b) Interest Rate on Delinquent Tax Paid in
				  Installments. Any tax imposed by the Inheritance Tax Law which becomes
				  delinquent and is being paid in installments shall bear interest as follows:
(1) In any case where the tax is paid in
				  installments under the provisions of Revenue and Taxation Code Section
				  14105
				  or Section
				  14143.5, the delinquent tax shall
				  bear interest at the adjusted rate of interest specified in Section
				  14211.1.
(2) In any case where the tax attributable to
				  a dwelling is paid in installments under the provisions of Revenue and Taxation
				  Code Section
				  14213,
				  the delinquent tax shall bear interest at the rate specified in Section
				  14213.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.3 - Tax Compromises › Section 14211.1 - Adjusted Rate of Interest on Delinquent Tax-Undue Hardship and Qualified Family Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the case of any tax which becomes delinquent and is
					 being paid in installments pursuant to the provisions of Revenue and Taxation
					 Code Section
					 14105
					 or Section
					 14143.5, the delinquent amount
					 shall bear interest at the adjusted rate of interest or at 12 percent per
					 annum, whichever is lower. The adjusted rate of interest shall be determined in
					 the following manner:
(a) Commencing
				  September 29, 1979, the effective date of Stats. 1979, Ch. 1168, the initial
				  adjusted rate of interest shall be 11 percent per annum.
(b) Thereafter, the Controller shall
				  establish an adjusted rate of interest not later than October 15 of any year if
				  the adjusted prime rate charged by banks (that being 90 percent of the average
				  predominate rate quoted by commercial banks to large businesses, as determined
				  by the Board of Governors of the Federal Reserve System) during September of
				  that year, rounded to the nearest full percent, is at least a full percentage
				  point more or less than the adjusted rate of interest which is then in effect.
				  Any such adjusted rate of interest shall be equal to the adjusted prime rate
				  charged by banks, rounded to the nearest full percent, and shall become
				  effective on February 1 of the immediately succeeding year. Any adjustment
				  provided for under this subsection may not be made prior to the expiration of
				  23 months following the date of any preceding adjustment under this subsection
				  which changes the rate of interest.
(c) Any annual installment which is not paid
				  on the date prescribed for payment shall thereafter bear interest at the rate
				  of 12 percent per annum.
1. New
					 section filed 2-28-80; effective thirtieth day thereafter (Register 80, No.
					 9).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14211,
						Revenue and Taxation Code, and Stats. 1979, Ch.
						1168.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.3 - Tax Compromises › Section 14212 - Waiver of Interest

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Upon a showing that any tax imposed by the Inheritance Tax
					 Law was not paid prior to the delinquent date solely because of the failure of
					 a public official to perform his or her duties in a timely manner, the interest
					 accrued during the period commencing with the delinquency date and ending 3
					 days after notice of the amount of tax due is given to the executor,
					 administrator, trustee or other person liable for payment of the tax shall be
					 waived.
1. New
					 section filed 2-28-80; effective thirtieth day thereafter (Register 80, No.
					 9).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14212,
						Revenue and Taxation Code, and Stats. 1979, Ch.
						1075.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 8.3 - Tax Compromises › Section 14213 - Interest on Tax Attributable to Dwelling

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the case of any tax attributable to a dwelling which
					 becomes delinquent and is being paid in installments pursuant to the provisions
					 of Revenue and Taxation Code Section
					 14213,
					 the delinquent amount shall bear interest at the rate of 7 percent per annum
					 subject to the following conditions:
(a) In any year in which the annual
				  installment is not paid on or before the date prescribed,the interest for that
				  year shall accrue at the rate of 12 percent per annum.
(b) The rate of interest shall be increased
				  to 12 percent per annum from and after 60 days following the occurrence of any
				  of the following:
(1) The dwelling is sold;
				  or
(2) The transferee no longer
				  maintains the dwelling as the transferee's principal place of
				  residence.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9 - Collection of Tax Lien › Section 14301 - Recordation of Abstract of Order Fixing Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A certified abstract of any order fixing tax may be
					 recorded with the recorder of any county pursuant to Section
					 674,
					 Code of Civil Procedure. Upon such recordation the tax becomes a lien upon all
					 the real property in the county owned by the person liable for the tax, to the
					 extent specified in Section
					 674 of said code.
NOTE: Additional reference: Section
					 14537.
NOTE: Reference: Section
					 14301,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9.1 - Withholding of Tax by Third Persons › Section 14341 - Consents-Stock Transfers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Unless it first secures the written consent of the State Controller, or of a
				  person authorized in writing by the State Controller to issue the consent, no
				  California corporation or foreign corporation whose principal place of business
				  is in California can transfer on its books or issue a new certificate for any
				  share of its capital stock which:
(1) Belongs
				  to or stands in the name of a resident or nonresident decedent; or
(2) Belongs to or stands in the joint names
				  of a resident or nonresident decedent and any other person; or
(3) Is held in trust for a resident or
				  nonresident decedent.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9.1 - Withholding of Tax by Third Persons › Section 14344 - Access to Safe Deposit Box

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9.1 - Withholding of Tax by Third Persons › Section 14344.1 - Depositary's Record of Entry to Safe Deposit Box

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9.1 - Withholding of Tax by Third Persons › Section 14344.2 - Information from Safe Deposit Company

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 9.1 - Withholding of Tax by Third Persons › Section 14345.1 - Issuance of Consent

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
To secure any consent mentioned in Revenue and Taxation
					 Code Sections
					 14341,
					 and
					 14345,
					 a written request therefor must ordinarily be submitted to any of the
					 following:
(a) The State
				  Controller.
(b) The inheritance or
				  any assistant inheritance tax attorney of the Division of Tax
				  Administration-Inheritance Tax of the State Controller's office.
(c) The inheritance tax referee who has been
				  assigned to the estate in which the request is being made.
The persons enumerated in subdivisions (b) and (c) above
					 have written authorization from the State Controller to issue consents. The
					 State Controller has also authorized legal assistants of the Division of Tax
					 Administration-Inheritance Tax to issue consents to transfer.
No consent to deliver property will be issued unless
					 evidence is submitted that the payment of the tax on the transfer thereof is
					 otherwise amply secured.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14345,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 10 - Refunds › Section 14371 - Refund of Erroneous Payment in Excess of Order Fixing Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any person making an erroneous payment of tax in excess of
					 the amount specified in an order fixing tax as finally amended or modified, and
					 as adjusted for the discount or interest provisions of the law, is entitled to
					 a refund of the amount erroneously paid.
NOTE: Reference: Section
					 14371,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 10 - Refunds › Section 14371.1 - Refund of Erroneous Payment in Excess of Controllers' Determination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Where there is no order fixing tax amounts erroneously paid
					 will be subject to refund to the person making payment on presentation of proof
					 satisfactory to the Controller that he is entitled to a refund.
NOTE: Reference: Section
					 14371,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 10 - Refunds › Section 14371.2 - Erroneous Payment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An erroneous payment is that portion of the amount paid
					 which is in excess of the amount specified in an order fixing tax or where
					 there is no order fixing tax, in excess of the amount specified in a
					 Controller's determination of tax.
NOTE: Reference: Section
					 14371,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 10 - Refunds › Section 14372 - Time Limitation for Refund Applications

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Application for refund of an erroneous payment may be made
					 to the Controller, or to the superior court having jurisdiction within one year
					 after entry of the order fixing tax or of the decree of final distribution of
					 the estate, whichever is later.
NOTE: Reference: Section
					 14372,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 10 - Refunds › Section 14372.1 - Application for Refund

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for refund of an erroneous payment where the
					 tax has been fixed in a Controller's determination shall be made to the
					 Controller within one year after the determination becomes final, within two
					 years of the decedent's death or within one year after the erroneous payment,
					 whichever is later.
NOTE: Reference: Section
					 14372,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14501.1 - Inheritance Tax Declaration-Description of Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In general, in listing property upon Form IT-22, entitled
					 "Inheritance Tax Declaration," (see Section
					 14501(c)) the
					 description thereof should be such that the property may be readily
					 identified.
(a) Real Property. In
				  describing real property or any interest therein, set forth:
(1) A description of the property sufficient
				  to identify it.
(2) The name of the
				  county in which the property is located.
(3) If located in a city, the place where
				  located by street and number.
(4)
				  If improved, a short statement of the character of the improvements.
(5) The name of the person in whose name the
				  title stands.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14501.2 - Statute of Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
There is no statute of limitations respecting the time
					 within which the proceeding mentioned in Revenue and Taxation Code Sections
					 14501
					 through
					 14515
					 may be commenced.
NOTE: Reference: Section
					 14501,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14502 - Hearing Before Referee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In reaching a determination as to whether any tax imposed
					 by the Inheritance Tax Law is due in the estate of a decedent, the inheritance
					 tax referee may conduct a hearing at which he or she may exercise all the
					 powers of a referee of the superior court, and examine any person under oath
					 who the referee believes possesses knowledge of necessary facts. The referee
					 may issue a subpoena requiring any such person to appear and testify at the
					 hearing and to produce any book, paper, or record in his custody or control
					 that may be relevant to the inquiry. Any person served with such a subpoena who
					 refuses to appear and testify, or produce the required book, paper, or record,
					 is guilty of a contempt of the superior court.
The referee will hold a hearing in those cases in which he
					 or she deems it necessary or at the request of the taxpayer or his or her
					 representative or at the request of the Division of Tax
					 Administration-Inheritance Tax of the State Controller's office. The Division
					 will generally request a hearing in any case in which a substantial inheritance
					 tax question is involved.
The documents specified in Section
					 14501.1 must be submitted to the
					 referee prior to the time of the holding of any hearing by him or
					 her.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14502,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14506 - Proposed Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Prior to filing any report with the superior court in any
					 proceeding to determine tax (see Revenue and Taxation Code Sections
					 14501
					 through
					 14577
					 and Probate Code Sections
					 1170 through
					 1175) the
					 inheritance tax referee must send the State Controller a copy of the proposed
					 form thereof.
NOTE: Reference: Section
					 14506,
					 Revenue and Taxation Code.