140.095 Credit in case same property passes again within five years.

357 words·~2 min read·/ky/chapter-140/140-095

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)As used in this section the word "transfer" means a taxable transfer under the

provisions of KRS Chapter 140.

(2)Subject to the provisions of this section, any person to whom property is transferred

shall be allowed a credit against the tax imposed by KRS 140.070, if the property

was transferred to the immediate decedent within five

(5)years prior to the death of

the immediate decedent and a tax paid on the prior transfer under the provisions of

KRS Chapter 140. To be entitled to such tax credit, the person claiming it shall

identify the property as having been so transferred and taxed or identify the property

as having been acquired in exchange for property so transferred and taxed.

(3)The tax credit shall be computed by allocating to that part of the previously taxed

property, which is the subject of the immediate transfer, the proportionate part of

the tax paid on the prior transfer as the present value of the previously taxed

property transferred to the immediate beneficiary or distributee bears to the total

present value of all the property received by the immediate decedent from the prior

decedent which is transferred to all the immediate beneficiaries or distributees.

Provided, however, that the tax credit shall not exceed an amount equal to such

proportion of the total tax due on all property transferred to the immediate

beneficiary or distributee from the immediate decedent (computed before any tax

credit is applied) as the present value of the previously taxed property transferred to

the immediate beneficiary or distributee from the immediate decedent bears to the

present value (including any exemption allowed) of all property transferred to the

immediate beneficiary or distributee from the immediate decedent. If the estate of

the immediate decedent consists in part of property not previously transferred and

taxed as described in subsection (2), it shall be presumed for the purpose of this

subsection, unless the contrary clearly appears, that each distributive share of the

entire estate includes the same proportion of the previously taxed property as the

entire value of each share bears to the aggregate value of all the entire shares.