Instructions for REV-1502 Schedule A

REV-1502 EX (10-15) Real Estate

There are three methods to value the property so that a proper valuation may GENERAL INFORMATION property at date of death: sale price, be made if the special use is discontinued appraisal value or county tax assessment or if the property does not meet all PURPOSE OF SCHEDULE multiplied by the common level ratio requirements. Use REV-1502 Schedule A to report all factor. Pennsylvania real estate held by the Agriculture Exemptions decedent solely or as tenant-in-common. The Department of Revenue allows up For dates of death on or after July 1, to 15 months after the date of death 2012, real estate that qualifies under FORM INSTRUCTIONS to report a sale price. If you use the the Agriculture Exemptions enacted by sale price, you must report the gross Act 85 of 2012 may be exempt from ESTATE OF sales price. inheritance tax. For more information, Enter the complete name of the estate refer to Inheritance Tax Informational as shown on the REV-1500, Pennsylvania Important. Attach a copy of the Notice Inheritance tax 2012-01. Inheritance Tax Return. tax assessment notice, certified appraisal, or settlement sheet (HUD1) Note. Real estate held between a FILE NUMBER used to value the real property. decedent and his or her surviving Enter the file number of the estate spouse as either tenants by the If the real estate was sold to a family assigned by the Register of Wills as entireties or joint tenants with right of member or anyone associated with shown on the REV-1500, Pennsylvania survivorship for more than one year the administration of the estate, an Inheritance Tax Return. prior to the decedent's death is exempt appraisal or other documentary evidence from inheritance tax. of the fair market value must be GENERAL INSTRUCTIONS submitted to verify that the real estate Note. Real estate situated outside was sold at the fair market value. of Pennsylvania is exempt from DESCRIPTION Pennsylvania inheritance tax unless Report the physical street address of Important. Sale price can only under contract to sell prior to death. the property and the parcel ID number. be reported if the real estate See REV-1508, Schedule E. was sold within 15 months of the date When reporting the fractional interest in of death. a parcel of real property owned as a TOTAL tenant-in-common, state the decedent’s Total all items in the Value at Date of fractional interest, include the full value Special Farm Use Valuation Death column and enter value here. of the property with the description, and For dates prior to July 1, 2012, land Enter this value on Line 1, Page 2 of the enter only the value of the decedent’s devoted to agricultural use, agriculture REV-1500. reserve or forest reserve may be eligible interest in the column marked, “Value Caution. A retained life estate at Date of Death”. Supply a copy of the for preferential assessment measured by particular use, rather than by fair is fully taxable and should be deed showing the fractional interest. reported on REV-1510, Schedule G. market value. This preferential valuation VALUE AT DATE OF DEATH may be used to determine county prop- Real estate held as joint with right of Estates are required to report all real erty tax assessments. If you elect to use survivorship, except between spouses, is estate at the fair market value as of this method of valuation, the special reportable on REV-1509, Schedule F. the date of death. Fair market value is use valuation under the Pennsylvania All real estate held in a trust should be defined as the price at which the Farmland and Forest Land Assessment reported on REV-1510, Schedule G. property would be sold by a willing Act of 1974, 72 P.S. §5490.1, et. seq. seller, not compelled to sell, to a willing must be reported. You will also be The decedent’s indebtedness for any buyer, not compelled to buy, when both required to submit fair market value mortgages on the real estate reported have reasonable knowledge of the appraisals of the residential property, on this schedule should be claimed on relevant facts. farm outbuildings and agricultural REV-1512, Schedule I.