|
|
News Letter 4 - February 1992
Data files are now compressed using run-length encoding (RLE) to save disk space. The new version of Inter-Est can still read the old files, but writes any file used to the new format. The old file size was around 21K. The new files do not have a fixed size, but should be between 2.8K and 4K in size. When I converted the data files on my hard disk to the new format, I saved around 4 Meg. of disk space. New Overlay VersionInter-Est is now being distributed in two versions. Both new version are compressed, but now there is no penalty in loading time. The non-overlay version is a standard version that should be used if your PC has 640K and does not have a LAN (local area network) that takes up some of your memory. The overlay version should be used if you have a LAN installed. It uses about 90K less memory than the non-overlay version. Complex ComputationsIn the past, Inter-Est used the federal taxable estate as the denominator when it computed the indeterminate fraction or the 'All But' fraction. This has been changed. Now Inter-Est uses the federal taxable estate plus the federal adjusted taxable gifts. A additional option has been added to the Complex toggle. Instead of just turning Complex on and off, the toggle now cycles between:
The method you use will be determined by the State law and the terms of your will. COMPLEX1 is the same as to old complex. Where the Numerator of the indeterminate fraction is $171,200.00; the Taxable Estate is $4,132,476.23; and the Expense Items are $1,437,424.59; the Expense Charged would be $59,549.55. It is computed as follows:
COMPLEX2 is similar except for one thing. Before the input number for the numerator of the indeterminate fraction or the numerator of the 'All But' fraction are used in the computation the tax generated by that amount is added to the numerator. Where the Numerator of the indeterminate fraction is $171,200.00: the Taxable Estate is $4,183,118.59; the Expense Items are $1,459,605.94: and All State and Federal Tax is $1,878,072.53; and the Tax Generated (TG) by $171,200.00 is $139,555.46; the Expense Charged would be $108,431.19. It is computed as follows:
The computation of the tax generated by the numerator is based upon the formula: TG = ((171,200.00 + TG)/ 4,183,118.59) * 1,878,072.53. Suspense Account Now SupportedExcess interest payment can now be placed in a suspense account per Technical Advice Memo. 9130001, Feb. 5, 1991. This problem should be rare, as it is not normally in the taxpayer's interest to request this treatment. 10/16/92 Ver. 1.10NNew York input for Limited Powers of Appointment did not allow you to input the correct data even though you answered 'y'. This has been corrected. 9/11/92Small change made to computation of estimated future interest where Sec. 6166 was not selected (the old 6166A). Corrected an error that occured when the suspense account routines were added. 8/21/92A small change has been made to the Sec. 2044 computation. It is a change to the computation of the second limitation of the foreign death tax credit as computed for the purpose of the credit for tax on prior transfers computation. This should not affect may computations. 7/16/92Cleaned out the provision for the Sec. 2701(e)(6) credit because the proposed reg (25.2701-5) were not adopted as proposed. 7/14/92 Inter-Est Ver. 1.10MThere was an error in the New York tax used to compute interest. The error came up when additional features were added for 2044 property and the tax difference for non-residents. This has been corrected. 4/16/92 PRE Ver. 1.00IThe built in table used to compute the present value multiplier used in Sch. S should not be used for dates of death after April 30, 1989. PRE now allows you to compute your own present value multiplier for dates of death after April 30, 1989. 2/22/92 PRE Ver. 1.00HThe built in table for the annual payment threshold amount (indexed for inflation) for use in the Sch. S computation has be updated through 1991. You can still enter a manual amount for dates of death after 1991. 3/25/92The federal interest factors in the interest tables were reduced to 8% on deficiencies and 7% on refunds as of 4/1/92 per Rev. Rul. 92-21. 3/19/92 Inter-Est Ver. 1.10LIt was brought to my attention that the 15% additional estate tax under _4980A was deductable as an expense or indebtedness of the estate. The authority for this position is _2053(c)(1)(B) of the Code. I have adjusted Inter-Est to add this item to expenses automatically. Changes were also made in the computation of the adjusted gross estate for the purposes of Sec. 6166 and to state computations for Massachusetts, Connecticut and Tennessee. If you have any problems in this area, please call me. 2/24/82The new toggle in Inter-Est and PRE to support LPT2 and LPT3 has been expanded to provide some support for serial ports. Now COM1, COM2, and COM3 and supported as well. This provision has not been tested, so if you have trouble, you should set the toggle to LPT1 and use the DOS MODE command to redirect output. 2/22/92 PRE Ver. 1.00GA new toggle has been added to the Option submenu of the main menu. You can now print to LPT2 or LPT3 as well as the standard LPT1. This feature has not been fully tested yet. This is similar to the change I just made to Inter-Est. 2/21/92 Ver. 1.10KA new toggle has been added to the Option submenu of the main menu. You can now print to LPT2 or LPT3 as well as the standard LPT1. This feature has not been fully tested yet. If you have any problems, please call me. Support for COM1, etc. might be added in the future if this works out OK. 1/14/92 Inter-Est Ver. 1.10J -- PRE Ver. 1.00FThe way the data files are stored has been changed to save disk space. The files are now compressed using run-length encoding. This should make the file take up less space on the disk. These versions can still read the old files, but they write any file used to the new format. If you want to use some old files with the new versions, but keep a copy for use with your older programs, you should make copies before you try to use them with the new versions. After the data files have been compressed, you will not be able to use them with older versions of the programs. BUG FOUND IN NEW OVERLAY VERSION -- While working on the above, I found a bug in the overlay version of Inter-Est that I started shipping on 1/2/91. The bug would show up when the computation would cycle to the FORCE toggle while in the compute section. This has been corrected. The problem is only in the overlay version. The non-overlay version did not have the problem. -- As this overlay version is new, there might be one or two more problems with it. If you are using the new overlay version, let me know if you have any problems. 1/7/92 Ver. 1.10II have worked on the Texas Compounded Monthly Interest factor some more. The answers now seem to be very close, but there is still some difference between the way I compute the interest factor and the way the State of Texas computes the interest factor. I will continue to work on this problem and try to get the factors closer. 1/2/91The distribution disks have been changed along with the install program. There are now two versions of Inter-Est on the 3 1/2" disks. An overlay version is in the root directory, and a non-overlay version in is a subdirectory called "non-over". On the 5 1/2" disks, the overlaid version is on Disk 1, and the non-overlay version is on Disk 3. The install program now asks you which version you want. The non-overlay version is a standard version that has been compressed. It should be used if your PC has 640K and does not have a LAN (local area network) that takes up some of your memory. The overlay version is also compressed. It should be used if you have a LAN installed. It uses about 90K less memory than the non-overlay version. The method of compression has changed so that there is no penalty in loading time. 12/24/91The federal interest tables have been adjusted to reflect the new rates for the first quarter of 1992. 9% for deficiencies and 8% for refunds. 12/17/91 Ver. 1.10HA simple provision has been added to support the _2701(e)(6) credit per the proposed reg (_25.2701-5, Adjustments to mitigate double taxation. If you have any problems with this credit, please let me know. The prompt has been placed in the Misc. Page one section. The prompt for input will only appear if the date of death was after Oct. 8, 1990. 12/12/91 Ver. 1.10GI have received more information about the way the State of Texas will compute interest using their new method. This new method applies to estates with a due date after August, 1991. My new method four (4) has been modified to conform to the Texas requirements. The interest is compounded monthly for whole months. The interest for any days left over is computed as simple interest. The factor for each month is based upon the number of days in the month. For example the factor for Sept. 1991 would be computed as (30/365) * .12, and the factor for Oct. 1991 would be computed as (31/365) * .12. The Compound Date is the date each month that is the anniversary of the due date. If a Compound Date does not exist because of the number of days in the month, the first day of the next month is used as the Compound Date. February of leap year is treated as having 29 days, but the divisor remains 365 even in leap year. This is my second approximation of the new Texas interest tables. There will probably have to be more changes later, but this should be fairly close. Texas computes all factors from the due date. To compute interest factors for interim periods requires the computation of factors from the due date to the starting date and from the due date to the ending date. The interim factor is then computed from these two factors. This will not change the way the normal interest computations are computed from the input section, but if you select a table using the new method to use from the interest section of the main menu, you must input three dates instead of two. The method that I used will not be accurate where you cross from one bracket to another. For this reason, the TEXAS2.INT table only uses one bracket. 12/4/91Error found in input for Indiana State Computation. The prompt for the relationship of the beneficiary to the decedent would only allow you to input 'a', 'b' or 'c'. It would not allow you to input 'd' or 'e'. This has been corrected. 12/4/91 Ver. 1.10FAn additional method has been added to the interest computation methods. The computation types offered now are:
The new method (4) was added because Texas changed the way they will compute interest for returns with a due date after August, 1991. The new method does the following: The interest is compounded monthly for whole months. The interest for any days left over is computed as simple interest. To compute the number of days left over, if the starting day of the month exceeds the number of days in the month before the ending month then the number of days is computed using the first day of the final month. For example: From October 31 to December 6 would be considered one (1) month and five (5) days, not one (1) month and six (6) days. Texas has not determined how they will handle any interim payments, so this provision will be modified when Texas issues their regulations. 11/18/91 Ver. 1.10EThe change to the New York computation made for Ver. 1.10D was not correct or complete. The computation of New York non-resident tax has been corrected and additional changes have been made to the computation of the pick-up tax for New York non-residents. The pick up tax computation for New York where there is Sec. 2044 property has also been modified. If you have any problems with the New York tax computation in this area, please contact me. 11/15/91 Ver. 1.10DTwo changes have been made to the New York computation. The unified credit computation has been changed to the credit will not be negative. A new feature has been added for estate with a date of death prior to 5/26/90. The tax attributable to intangible out of state property is now considered for the estates of non-residents of New York. If you have any problems in the area contact me. §2701(e)(6) CreditA simple provision has been added to support the _2701(e)(6) credit per the proposed regulation (_25.2701-5, Adjustments to mitigate double taxation). This provision will only apply to estates with a date of death after Oct. 8, 1990, if it ever become law. New Commissions OptionAn additional feature has been added to the Interrelated Commissions section. Some interest options now have a choice to consider Statutory (Refund) interest in the computation of interrelated commissions. If the new option is selected the interest expense used to compute the interrelated items will be reduced by any statutory interest refunded to the estate. New York Adjustments
The computation of New York non-resident tax has been corrected and additional changes have been made to the computation of the pick-up tax for New York non-residents.
The pick up tax computation for New York where there is Sec. 2044 property has also been modified.
The unified credit computation has been changed so the credit will not be negative.
The computation of the New York unified credit was changed. Now, prior to 7/1/78, the credit is the amount of the tax if the tax is $40 or less and if the tax exceeds $40, the credit is $0.00. The credit after 6/30/78 is unchanged. This change is made to allow for the computation on an old return. Support for returns this old is limited, and not complete. If you have a specific problem call me. Texas Interest ComputationsA new method was added to support monthly compounding because Texas has changed the way they will compute interest for returns with a due date after August, 1991. The new Texas method does the following: The factor for each month is based upon the number of days in the month. For example the factor for Sept. 1991 would be computed as (30/365) * .12, and the factor for Oct. 1991 would be computed as (31/365) * .12. The Compound Date is the date each month that is the anniversary of the due date. If a Compound Date does not exist because of the number of days in the month, the first day of the next month is used as the Compound Date. February of leap year is treated as having 29 days, but the divisor remains 365 even in leap year. The method that I use is not accurate if you cross from one bracket to another. For this reason, the TEXAS2.INT table only uses one bracket. North Carolina CreditThe statutory credit was incorrect for North Carolina for dates of death after the middle of 1986. This has been corrected. Indiana State ComputationError found in input for Indiana State Computation. The prompt for the relationship of the beneficiary to the decedent would only allow you to input 'a', 'b' or 'c'. It would not allow you to input 'd' or 'e'. This has been corrected. Possible New Version - Some DayI am still working on this, but so far I have not accomplished much. I will continue to work on a new interface that will be easier to use, but this is definately a long term project. Maintenance and SupportIf you are having trouble with a computation using Inter-Est, please call us. We provide support to all our users. Previous NewsLetter Home Page Top of Page Next NewsLetterCecil 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 |
