Effective July 1, 2001, an estate is required to file an Iowa inheritance tax return if the entire estate of the decedent exceeds the sum of $25,000 after deducting the liabilities of the estate.
EXAMPLE 1: The total aggregate value of the tangible personal property in the estate is $3,000. The executor makes an in-kind distribution of a diamond ring worth $1,000 to a neighbor. The diamond ring is not subject to inheritance tax.
EXAMPLE 2: The total aggregate value of the tangible personal property in the estate is $15,000. The executor makes an in-kind distribution of a diamond ring worth $1,000 to a neighbor. The diamond ring is subject to inheritance tax because the total aggregate value of tangible personal property is greater than $5,000.
SCHEDULE B Brother, sister (including half-brother, half-sister), son-in-law, and daughter-in-law. There is no exemption. If the share is: Not over $12,500, the tax is 5% of the share. | |||
If over | But not over | Tax is | Of excess over |
$ 12,500 | $ 25,000 | $ 625 + 6% | $ 12,500 |
25,000 | 75,000 | 1,375 + 7% | 25,000 |
75,000 | 100,000 | 4,875 + 8% | 75,000 |
100,000 | 150,000 | 6,875 + 9% | 100,000 |
150,000 | and up | 11,375 + 10% | 150,000 |
SCHEDULE C Uncle, aunt, niece, nephew, foster child, cousin, brother-in-law, sister-in-law, child's stepchild, and all other individual persons. There is no exemption. If the share is: Not over $50,000, tax is 10% of the share. | |||
If over | But not over | Tax is | Of excess over |
$ 50,000 | $100,000 | $ 5,000 + 12% | $ 50,000 |
100,000 | and up | 11,000 + 15% | 100,000 |
SCHEDULE D A firm, corporation or society organized for profit, including an organization failing to qualify as a charitable, educational or religious organization: Effective July 1, 2001, any fraternal and social organization which does not qualify for exemption under IRC Section 170(c) or 2055: 15% of the amount. | |||
SCHEDULE E Any society, institution or association incorporated or organized under the laws of any other state, territory, province or country than this state, for charitable, educational or religious purposes, or to a cemetery association, including a humane society not organized under the laws of this state, or to a resident trustee for use without this state: 10% of the amount. | |||
SCHEDULE F An unknown heir, as distinguished from an heir who is not presently ascertainable, due to contingent events: 5% of the amount. | |||
SCHEDULE G A charitable, religious, educational, or veterans organization as defined in IRC Section 170(c) or 2055. All other shares to income tax exempt organizations that are not defined in IRC Section 170(c) must provide their IRS letter of determination. Organizations may also be required to provide evidence that the bequest has restricted the funds to a conforming activity. Public libraries, public art galleries, hospitals, humane societies, municipal corporations, bequests for care of cemetery or burial lots of the decedent or the decedent's family, and bequests for religious services the total of which does not exceed $500. Entirely exempt: No tax. |
Deaths Occurring During: | Return Due Date: |
July 1996 | April 30, 1997 |
August 1996 | June 2, 1997 (May 31 is a Saturday and June 1 is a Sunday) |
September 1996 | June 30, 1997 |
October 1996 | July 31, 1997 |
November 1996 | September 2, 1997 (August 31 is a Sunday, September 1 is Labor Day) |
December 1996 | September 30, 1997 |
January 1997 | October 31, 1997 |
February 1997 | December 1, 1997 (November 30 is a Sunday) |
March 1997 | December 31, 1997 |
April 1997 | February 2, 1998 (January 31 is a Saturday and February 1 is a Sunday) |
May 1997 | March 2, 1998 (February 28 is a Saturday and March 1 is a Sunday) |
June 1997 | March 31, 1998 |
This rule is intended to implement Iowa Code sections 421.14, 450.4, 450.5, 450.6, 450.9, 450.22, 450.44, 450.46, 450.47, 450.51, 450.52, 450.53, 450.63, and 450.94 and 2004 Iowa Acts, chapter 1073, and 2005 Iowa Acts, chapter 14.
Iowa Admin. Code r. 701-900.2