Example 2

This will be a simple computation to give you some basic number for use with the next two computations. This computation is a simple charitable deduction with the bequest payable out of residue with few problems.

The data for this computation is simple:

1. Date of Death: 6/15/85
2. Gross Estate: $900,000.00
3. Sch. JK&L expenses: $35,000
4. Specific bequest to charity: $12,500
5. Percentage of residue to charity: 10%
6. Specific bequest to Other than charity before residue: $250,000
7. The State Death Tax Credit Controls the computation of the state tax.
8. Both state and federal taxes are charged to residue.

Step 1

Open the program by double clicking on the icon if it is not already open.

Step 2

Click on the File menu and select the New option. The New dialog box has a list box showing that it can create either a Case File or an Interest Table. If Case File is not selected, select it by clicking on it with your mouse. When Case File is selected, click on the OK button and a new case file will be created.

Step 3

Enter some basic information. Click on the General button on the Case Bar to the left of the DeskTop. This will bring up the General Tab Sheet with the General Tab Page selected. Enter the date of death as "6/15/85". Then hit Tab to move to the Decedent's Name edit box and enter "Joe Blow, Sr.". Hit Tab to move the the memorandum edit box and enter "Second sample computation". Hit Tab to move to the gross estate edit box and enter "900,000". Hit Tab to move to the JK+L before interrelated items edit box and enter "35,000". At this point hit Enter to leave this dialog box and return to the main output screen.

Step 4

We will next enter the charitable deduction. Click on the Deduct button on the Case Bar to the left of the DeskTop. this will bring up the Deductions Tab Sheet with the Marital Tab Page selected. Click on the Charitable Tab to go to the Charitable Tab Page. Enter the Specific Bequests to Charity as "12,500.00". Then hit Tab to move the Bequests from Residue edit box and enter "10" to represent 10% of residue. Next click on the Residue Tab to go to the Residue Tab Page. In the edit box for total specific bequests before residue enter "2500,000". Hit Enter to accept all data entered so far.

Step 5

Next we will tell Inter-Est to compute the state death taxes for one state based upon the full state death tax credit. Click on the States button on the Case Bar to the left of the DeskTop. When the State Input Screen appears, click on the Add State button. In the State Description & Method dialog box that appears, I enter the name of the state, "Texas". The method of tax computation is already set at "State Death Tax Credit, All", so all I need to do is hit Enter. This will return me to the State Input Screen. Here I click on the Close button and return to the output screen.

In the output window the federal estate tax is $125,637.78 and the charitable deduction is $57,872.01.

Step 6

We have finished this computation. The next thing to to is to name and save this file. You can get to the Save As Dialog box three different ways. Click the Save Button on the Tool Bar, From the File menu select Save, or from the File menu select Save As. Save the file under the name "Sample2" by entering that name in the File name edit box and hitting return.

Notice that the name on the title bar has changed to "Sample2" showing that the new name was accepted.

Check your answer against the program output shown below.

Program Output

Previous Example     Home Page     Top of Page     Next Example

Cecil Cammack, Jr. dba
Cammack Computations Co.
P. O. Box 725, Cleburne, TX 76033
Voice: 1 (800) 594-5826
Email: cammack@inter-est.com
Price Information