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140.095 Credit in case same property passes again within five years.
(1)
(2)
(3)
As used in this section the word "transfer" means a taxable transfer under the
provisions of KRS Chapter 140.
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.
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.
History: Created 1948 Ky. Acts ch. 96, sec. 5.
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