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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

ADVERTISEMENT