Cal. Code Regs. tit. 18 § 15656.6

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 15656.6 - Supplemental Documents

(a) Inactive Stock.

In the case of a gift of listed inactive stock, of unlisted stock not actively traded in, or of stock of a close corporation, balance sheets of the issuing corporation as of a date as near to the date of the gift as is practicable, and detailed profit and loss statements of the corporation for each of the five years immediately preceding the date of the gift, must be filed with the return. Copies of balance sheets and statements already prepared by the company's accountant should be submitted. The number of shares outstanding and the nature of the business in which the company is engaged must be shown.

(b) Declaration of Trust.

If a gift was made by means of a declaration of trust, a copy of the trust instrument must be submitted with the return.

(c) Life Insurance.

For every policy of life insurance listed on the return the donor must procure a statement from the insurer on Form GT-4, Life Insurance Statement, in accordance with the instructions printed thereon, and file it with the Controller. If specifically requested by the Controller, the insurance company must file this statement directly with the Controller.

(d) Real Property.

Proof of value of real property is required in all cases. The Controller will generally consider the following documents adequate proof of value:

(1) An appraisal made as of the date of gift by an acting inheritance tax referee of the county in which the property is situate.

(2) If an appraisal has been made as of a date reasonably close to the date of gift by an inheritance tax referee in a probate or other proceeding, a statement to that effect describing the proceeding with sufficient clarity to enable the Controller to locate the records pertaining thereto.

(3) If the property was subject to a bona fide sale at a date reasonably close to the date of gift, a statement giving the date of sale, sales price, names of seller and buyer, their relationship to each other, and any other evidence available showing that the sale was a bona fide "arm's-length" transaction.

If proof of value is not given by any of the above methods, the Controller will require filing of supplemental property description forms, including the form GT-20, Substantiation of Value of Real Property.

The local assessed value of real property should not be returned as the value of the property unless evidence is submitted that such value in fact represents the actual market value of the property as of the date of the gift.

(e) Community Property.

In the case of a gift of community property, form GT-3, Marital Property Declaration, must be filled out and submitted with the return. Unless this is done, the property will be treated as the separate property of one of the spouses for gift tax purposes. (See also Section 15306).

(f) Charitable or Intangibles Exemption.

In order to prove his right to a charitable (see Sections 15441 through 15441.8 and Revenue and Taxation Code Sections 15441 and 15442) or intangibles (see Section 15451 and 15451.1, and Revenue and Taxation Code Section 15451) exemption, a donor must submit such documents or evidence as may be required by the Controller. In any case, there must be submitted in support of the intangibles exemption an affidavit of nonresidence.

NOTE: Reference: Section 15656, Revenue and Taxation Code.

Cal. Code Regs. Tit. 18, § 15656.6