Qualified Farm Property Valuation Election Application {34}

ET 34 Rev. 4/12 Estate Tax Unit P.O. Box 183050 Columbus, OH 43218-3050 1-(800) 977-7711 tax.ohio.gov Qualified Farm Property Valuation Election Application (Ohio Revised Code Section 5731.011) For dates of death prior to Jan. 1, 2013 Estate of: Decedent's last name Decedent's first name and initial Date of death County in Ohio Case number Decedent's Social Security number Part I ­ Qualification Ohio Revised Code (R.C.) section 5731.011 allows qualified farm property to be valued according to its qualifed use (CAUV value). To determine if farm property qualifies, please answer the following questions. 1. Real property. Is the farm located in Ohio? 2. Qualified heir. Has the farm property been inherited from or passed from the decedent to decedent's spouse, to the decedent's children or their spouses or their descendants or spouse of a descendant, to parents, aunts or uncles of the decedent or their descendants or spouse of a descendant? 3. Qualified use. Has the farm property been devoted exclusively to agricultural use within the meaning of R.C. section 5713.30(A)? Yes No Yes No Yes No If any answer to questions 1, 2 or 3 was "NO," the farm property will not qualify for the farm valuation election. If the answers were all "YES," these additional two requirements must be satisfied in order to qualify for the farm valuation election. 4. Fifty-percent test. The adjusted fair market value of the real and personal farm property (without any adjustment under R.C. section 5731.011), devoted exclusively to agricultural use must be at least fifty percent (50%) of the value of the decedent's adjusted gross estate. Use the following worksheet for the calculation. (a) (b) (c) (d) (e) (f) (g) Fair market value of gross estate ...................................................................................... $ Less: mortgages and liens................................................................................................ ( Adjusted gross estate ­ (a) minus (b) ............................................................................... $ Fair market value of real and personal farm property ....................................................... $ Less: mortgages and liens................................................................................................ ( Adjusted value of real and personal farm property ­ (d) minus (e) ................................... $ Ratio of (f) over (c) carried to four decimal places ............................................................ $ ) ) . 5. Twenty-five percent test. The adjusted fair market value of the real farm property (without any adjustment under R.C. section 5731.011), devoted exclusively to agricultural use must be at least twenty-five percent (25%) of the value of the decedent's adjusted gross estate. Use the following worksheet for the calculation. (a) (b) (c) (d) (g) Adjusted gross estate (from 4(c) above) ........................................................................... $ Fair market value of real farm property ............................................................................. $ Less: mortgages and liens................................................................................................ ( Adjusted value of real farm property ­ (b) minus (c) ......................................................... $ Ratio of (d) over (a) carried to four decimal places ........................................................... $ ) . If the farm property satisfies the requirements of questions 4 and 5, the farm property valuation election may be made. Part II of this form must be completed if the farm property valuation election is made. American LegalNet, Inc. www.FormsWorkFlow.com ET 34 Rev. 4/12 Page 2 Part II ­ Election The following information must be provided to the tax commissioner before a farm property valuation election may be made. 1. Description of farm property. Attach a full legal description of the farm property subject to election, and identify by schedule and item number on the estate tax return the farm property subject to the election. If the farm property is held by a partnership, corporation or trust, identify such entity. (The interest in a partnership, corporation or trust qualifies only if farm property would have qualified if the decedent owned it directly.) 2. Fair market value. Attach a statement of the fair market value of the farm property, including a copy of the appraisal. The appraisal must show separate values for the one-acre homesite, the improvements and the land only. 3. Qualified heirs. List the names, relationship to the decedent and addresses of the qualified heirs who have or will receive the farm property. Name Relationship Address 4. Transfer instrument. Attach a copy of the legal document transferring the farm property to the qualified heirs. If not transferred when the estate tax return is filed, a copy must be submitted within sixty (60) days of the date of transfer. 5. Agricultural use application. Attach a copy of the most recent real estate tax card(s) showing the agricultural use value and the appraised value. (Circle agricultural use value on copies.) If no application has been filed, check here and complete the worksheet titled estate tax form 35 ­ Worksheet for Developing the Value of Qualified Farm Property. American LegalNet, Inc. www.FormsWorkFlow.com ET 34 Rev. 4/12 Page 3 6. Farm use valuation instructions and worksheet Please complete the following to calculate the CAUV amount to be used for the estate tax form 2. (a) CAUV for real property land only (use column 3 below) ................................................... $ (b) Market value for real property land only (use column 2 below) ......................................... $ (c) (1) Market value of the one-acre homesite(s) only (use column 4 below) ................................................................... $ (2) Market value of improvements only (use column 5 below) ..... $ (3) Total of (c)(1) plus (c)(2)............................................................................................... $ (d) Total fair market value ­ sum of (b) and (c)(3) .................................................................. $ (e) CAUV ­ sum of (a) and (c)(3)............................................................................................ $ (f) Qualified use reduction ­ (d) minus (e), not to exceed the $500,000 recoupment base (if more than $500,000, continue to line