S.D. Admin. R. 64:80:06:01
S.D. Admin. R. 64:80:06:01
General Authority: SDCL 10-41-9.
Law Implemented: SDCL 10-40-1(1), 10-40-2.
Example:
On November 5, 1989, A, a 69-year old retired businessman who was recovering from a massive heart attack gave B, his son, a stock portfolio valued at $100,000. On January 2, 1990, he gave him a deed to all his real property valued at $300,000. On January 28, 1990, A died. In probating the estate, the remainder of A's property is used to pay the funeral expenses, the costs of administration, and the debts. For inheritance tax purposes, B must report the value of the stock portfolio and the real property under Schedule C of the South Dakota Inheritance Tax Report and Information for Judicial Determination of Inheritance Tax. The amount assigned to B is as follows:
Stock portfolio (Calendar year 1989) $ 100,000
Real property (Calendar year 1990) +300,000
Total value of transfers $ 400,000
less contemplation of death exemption (1989) -10,000
less contemplation of death exemption (1990) -10,000
Net taxable transfer $ 380,000