ILNews

Tax return doesn't require attached appraisal

Back to TopCommentsE-mailPrintBookmark and Share

Indiana code doesn't require an estate to file an appraisal with its inheritance tax return, the Indiana Tax Court decided in two opinions handed down Wednesday.

At issue in IndianaDept. of State Revenue, Inheritance Tax Division v. Estate of Doris K. Parker, deceased,  No. 49T10-0812-TA-72, and Ind. Dept. of State Revenue, Inheritance Tax Div. v. The Estate of Marjean M. Ogle, No. 49T10-0906-TA-30, the Department of State Revenue appealed probate court determinations of inheritance tax liability. The department claimed the estates were required to file an appraisal by a licensed appraiser with their tax returns under Indiana Code Section 6-4.1-4-1.

In Parker, Doris Parker's estate filed its inheritance tax return reporting the fair market value of Parker's life estates, and the total fair market value of a family farm. That included nearly $70,000 in improvements Parker's daughter Willa Dean had made to the property. The estate didn't attach a formal appraisal to the return and the probate court held only the value of Parker's life estates were subject to the tax.

In Ogle, Marjean Ogle's estate attached an appraisal prepared by a local real estate broker.

I.C. Section 6-4.1-4-1 doesn't require an estate to get an appraisal valuing its assets at the fair market value, nor does it require an estate to file the appraisal with its inheritance tax return, concluded Judge Thomas Fisher. The judge disagreed with the department's claim that its regulation 45 IAC 4.1-4-3, which requires a formal appraisal by a licensed appraiser, should be enforced because it clarifies the statute. That regulation doesn't state that an estate must get and then submit the appraisal with its tax return.

"If the legislature had intended for the Estate to substantiate its own opinion as to the fair market value of its assets by attaching an appraisal to its return, it would have stated as much," he wrote in Parker.

Judge Fisher also ruled the probate court erred in holding that only the value of Parker's life estates were subject to the inheritance tax, and erred by deducting the monetary value of the improvements Willa Dean made to the farm while living there in computing the estate's tax liability. The judge remanded Parker for calculation of the proper amount of inheritance tax and interest.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  2. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

  3. This outbreak illustrates the absurdity of the extreme positions taken by today's liberalism, specifically individualism and the modern cult of endless personal "freedom." Ebola reminds us that at some point the person's own "freedom" to do this and that comes into contact with the needs of the common good and "freedom" must be curtailed. This is not rocket science, except, today there is nonstop propaganda elevating individual preferences over the common good, so some pundits have a hard time fathoming the obvious necessity of quarantine in some situations....or even NATIONAL BORDERS...propagandists have also amazingly used this as another chance to accuse Western nations of "racism" which is preposterous and offensive. So one the one hand the idolatry of individualism has to stop and on the other hand facts people don't like that intersect with race-- remain facts nonetheless. People who respond to facts over propaganda do better in the long run. We call it Truth. Sometimes it seems hard to find.

  4. It would be hard not to feel the Kramers' anguish. But Catholic Charities, by definition, performed due diligence and held to the statutory standard of care. No good can come from punishing them for doing their duty. Should Indiana wish to change its laws regarding adoption agreements and or putative fathers, the place for that is the legislature and can only apply to future cases. We do not apply new laws to past actions, as the Kramers seem intent on doing, to no helpful end.

  5. I am saddened to hear about the loss of Zeff Weiss. He was an outstanding member of the Indianapolis legal community. My thoughts are with his family.

ADVERTISEMENT