News Letter 12 - July 1997

Possible Law Change

There is a lot of talk about Congress changing the estate tax law. If this happens, we believe we can have modified versions of Inter-Est out within 60 days. Those who buy a copy of Inter-Est this summer, will get a free update if the law is changed this session.

Recent Computational Changes

The current release of Inter-Est 3.00 is Release 17. This version is written for Windows 95 and Windows NT. It can also be used with Windows 3.1x if you use Win32s which we furnish.

The current release of Inter-Est 2.00 for DOS is Release 50. We are still shipping Inter-Est 2.00. with both the standard version and the protected mode version.

Listed are the recent computational adjustments to Inter-Est. Any changes that also apply to Version 2.00 are marked with a (2).

The suspense account computation has been adjusted were a suspense account exests and the estate does not wish to apply it to an interum payment. (2)

The computation of the second limitation to the gift tax credit followed an old version of Form 4808 that did not allow for adjusted taxable gifts. (2)

When complex was selected, the Sec. 2207A right of reimbursement adjustment was made to residue directly as well as through complex. This was corrected.

When complex is selected, the ratio used to compute the indeterminate fraction and the "All But" fraction has been adjusted so it cannot exceed 100%.

In computing the qualifying ratio for Sec. 6166, the interest to the last period marked for use in computing the Sec. 6166 qualifying ratio was computed and printed out, but was not in fact used in the computation of the qualifying ratio.

You can now reduce the interest deduction directly by a fixed dollar amount to allow you to adjust the interest deduction for interest claimed on the income tax return.

New York computation of the credit for prior transfers was in error where there was an entry for adjusted taxable gifts. (2)

New York: Computation of the indeterminate fraction and "All But" fraction where the state was New York was not correct because it used the federal numbers. It now uses the federal numbers for all states but New York.

Massachusetts Sec. 3(a) exemption was not computed correctly for dates of death between 1985 and 1993. (2)

New Jersey output indicated that federal debts and expenses before interest was used. Corrected to total federal debts and expenses.

The New Jersey computation was looking in the wrong tax table for two classes of beneficiary. This has been corrected. (2)

Ohio provision to add back tax to the Ohio marital bequests has been made optional. This should suppor version of the Ohio Probate Code Sec. 5731.15 effective for all dates. The Ohio marital deduction was changed. The mini-max limit now goes from $500,000 before 7/1/91 to $1,000,000 after 6/31/91. As of 7/1/93 the marital deduction is treated as having no limit. The Ohio computation has been adjusted so that the state tax attributable to any Sec. 2207A is adjusted for the tax attributable to the marital bequest and the charitable bequest (2)

Ohio marital deduction was in error by dating a change in computation method to 7/1/94 instead of 7/1/93

Three supported states do not charge interest on all state tax. This was not handled correctly. A change has been made so New York, Louisiana, and Michigan tax that draws interest is computed correctly.

New York does not charge interest on the pickkup tax.

Louisiana does not charge interest on the pick-up tax.(2)

Michigan does not charge interest on the county tax.

Federal Interest Rate Remains the Same

You should be using the federal.it4 interest table instead of the federal2.it4 interest table because of Rev. Proc 95-17..

Remember to keep your interest tables current. The federal rate on deficiencies went to 9% as of July 1, 1996, and has remainded unchanged since then.

The federal interest rates for refunds are one percent below the rates on deficiencies.

Ease of Use

The following additions were made to Inter-Est 3.00. These changes should make it easier to use.

Optionional larger toolbar buttons.

You now select printer fonts and then set the screen font sto a percentage of the printer font size.

Prepare file output format has been improved.

Font selection problem that caused Inter-Est to run out of resources corrected.

Added Search Menu option to allow a search of the output data of Case files and Prepare fines to search for an individual word or phrase.

Multi-line edit boxes have been changed so they will accept a carrage return so you can have a blank line.

Most of the printing problems we had earlier have been solved.

Maintenance and Support

If you are having trouble with a computation using Inter-Est, please call us. We provide support to all of our users.

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