Tennessee Form Inh 300 – Fill Out and Use This PDF

INSTRUCTIONS

DEDUCTION:

(a)Marital Deductions - There shall be allowed as a deduction in computing taxable gifts for a calendar year an amount equal to the gift(s) made by a donor to his/her spouse, provided they were married to each other at the time such gift(s) were made, and further provided that the property so transferred is not either of the following:

(1)Characterized as being a terminable interest; however, see (QTIP) election below.

(2)An interest in unidentified assets.

(b)Election to Deduct Qualified Terminable Interests - You may elect to claim a marital deduction for qualified terminable property or property interests. The election is irrevocable. The effect of the election is that the property (interest) will be treated as passing to the spouse and will not be treated as a nondeductible terminable interest. All of the other martial deduction requirements must still be satisfied before you may make this election.

Qualified terminable interest property is property that: (1 ) passes from the donor; and

(2) in which the spouse has qualifying income interest for life.

The spouse has a qualifying income interest for life if the spouse is entitled to all of the income for the property payable annually or at more frequent intervals, and during the spouse’s lifetime no person has a power to appoint any part of the property to any person other than the spouse.

In order to claim this election, you must check “yes” in the appropriate box on the face of the return. On Schedule A, you should group the property interests for which you made the election separately and mark them “Qualified Terminable Interest Property.” (QTIP)

(c)Charitable Deduction - There shall be allowed as a deduction in computing taxable gifts for a calendar year those gifts transferred to the United States, the State of Tennessee, or to any political subdivision thereof, any public institution herein for exclusively public purpose, or any corporation, society, association or trust therein, or in a state which grants a like exemption to such institutions in Tennessee formed for charitable, educational, scientific, or religious purposes.

DATES AND VALUATION:

The valuation of all property, real and personal, shall be appraised at its full and true value as of the date of the making of the gift.

INFORMATION REQUIRED:

1.REAL ESTATE - describe and identify each parcel so that it may be readily located for inspection and valuation. If formal appraisals are accomplished, attach a copy of the appraisal to the tax return. For city properties, state the street and number, ward, subdivision, block and lot identification numbers or letters. For rural properties, state the township, range, landmarks, number of acres and the road or street name upon which the property is located. For all improved properties, include a short statement of the type and description of the improvement(s). State the gross monthly rental for all parcels of real estate that are rented. Attach a copy of the lease for all leased parcels.

2.STOCKS AND BONDS - the description of stocks should indicate the number of shares, whether common or preferred price per share, exact name of corporation and, if not listed on a stock exchange, the address of the principal business office. If stock is listed, state the principal stock exchange upon which sold. The description of bonds should include quantity and denomination, name of the obligor, kind of bond, date of maturity, interest rate, and interest due dates. State the exchange upon which the bonds are listed, or if unlisted, the principal business office address of the company or municipality.

3.NON-LISTED CORPORATIONS, PARTNERSHIPS, AND PROPRIETORSHIPS - attach copies of the balance sheets and income statements for the five full years ending nearest to the date of the gift. Also, attach a statement which sets forth the criteria considered and the valuation method used in determining the full and true value.

4.NOTES AND MORTGAGES RECEIVABLE - indicate the face value, unpaid balance, date of the note or mortgage, date of maturity, name of maker, interest rate, interest dates, and a brief description of the property mortgaged.

5.ARTISTIC OR INTRINSICALLY VALUABLE GIFTS - attach a copy of the expert appraisal of the gift items.

6.GIFTS TO A TRUST - attach a copy of the trust agreement or governing instrument.

7.PARTIAL CONSIDERATION GlFTS-where property is transferred for less than an adequate and full consideration in money or money’s worth, then the amount by which the value of the property exceeds the value of the consideration shall be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year.

8.POWERS OF APPOINTMENT - the exercise or release of a power of appointment may constitute a gift by the individual possessing such a power. In any case where such action has been taken, see §67-8-101 (c) Tennessee Code Annotated.

9.ACTUARIAL VALUATION OF FUTURE AND LlMITED ESTATES - computation of the values of any future, contingent or limited estate, income interest, or annuity must be attached to the tax return. Under §67-8-107(b) Tennessee Code Annotated, such interest shall, so far as possible, be determined by the rule, method, and standard of mortality in use by the Internal Revenue Service at the time of the gift.

10.OTHER GIFTS - all other gifts should be fully described so that the value placed on the gift can be verified.

11.CONSENT OF SPOUSE - gifts made during the calendar year by the donor and spouse to third parties may be considered as being made one-half by each. This election can be made only if the donor and spouse are married at the time of the gift and do not remarry during the remainder of the year. The "Consent of Spouse" part of the gift tax return, even if Non-Taxable, must be completed in its

entirety, to perfect the election for gift splitting.