Pennsylvania Schedule B - Stocks and Bonds (Instructions)

Schedule B - Stocks and Bonds (Instructions)
Instructions for REV-1503 Schedule B - Stocks and Bonds
Instructions for REV-1503 Schedule B

Stocks and Bonds

REV-1503 EX (02-15)

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use Rev-1503 Schedule B to report all
stocks and bonds held by the decedent
solely or as tenant-in-common.

FORM INSTRUCTIONS
ESTATE OF
Enter the complete name of the estate as
shown on the REV-1500, Pennsylvania
Inheritance Tax Return.
FILE NUMBER
Enter the file number of the estate
assigned by the Register of Wills as
shown on the REV-1500, Pennsylvania
Inheritance Tax Return.

GENERAL INSTRUCTIONS
DESCRIPTION
The stock description must include the
number of shares, whether common or
preferred, par and market values, the
exact name of the corporation and
CUSIP number, if available.
The bond description must include the
type of bond, quantity, denomination,
obligor, date of maturity, interest rate,
and interest due dates.
VALUE AT DATE OF DEATH
Estates are required to report all stocks
and bonds at the market value as of the
date of death.
Fair market value is determined
by taking the mean of the highest
and lowest quoted selling prices on the
date of death.
Where death occurs on a weekend, the
valuation of any stock listed on the

www.revenue.pa.gov

Nasdaq or other major exchange is the
average of the mean between the high
and low for Friday and the mean between
the high and low on the Monday after
death. Where death occurs on a holiday,
the valuation of such stock is the average
of the mean of the high and the low on
the day preceding the holiday and the
mean between the high and low of the
succeeding market day. If there were no
sales on the valuation date, but there
were sales on dates within a reasonable
period both before and after the valuation
date, the fair market value is determined
by taking a weighted average of the
means between the highest and lowest
sales on the nearest date before and the
nearest after the valuation date. The
average is to be weighted inversely
by the respective numbers of trading
days between the selling dates and the
valuation date.
In cases of stock quotations listed as
“Over the Counter”, use the mean
between the bid and asked. The “alternate
valuation” is not accepted for Pennsylvania Inheritance Tax purposes.
Note. U. S. Savings Bonds, series
E, EE and I must be reported at
the date of death redemption value.
Series H and HH must be reported at the
face value.
Mutual funds are to be reported at the net
asset value (NAV). Include as a separate
item dividends not collected at death
but payable to the decedent or estate
because the decedent was a stock-holder
of record on or before the date of decedent’s death. When stock is being traded
on an exchange and is selling ex-dividend
on the date of the decedent’s death,
add the amount of the dividend to the

ex-dividend quotation to determine the
fair market value of the stock as of the
date of the decedent’s death. Interest
due, but not collected, and interest
accrued, but not due as of the date of
the decedent’s death, is taxable and
must be reported on this schedule.
Important. Capital stock, registered bonds, a security or a security account held by the decedent in a
“Transfer on Death” [TOD] designation,
a “Payable on Death” [POD] designation
or any other beneficiary designation
format must be reported on REV-1510,
Schedule G.
In order to satisfy the reporting requirements the estate may file a return and
pay the tax prior to the transfer of the
asset. If that is not possible, you may also
receive a waiver from the Department of
Revenue prior to the transfer, or simply
provide written notice of the transfer to
the department within ten days of the
transfer. The latter two options for compliance can be accomplished by using
form REV-516 to request a waiver or
provide the appropriate notice within ten
days.
TOTAL
Total all items in the Value at Date of
Death column and enter value here.
Enter this value on Line 2, Page 2 of the
REV 1500.
Caution. Stocks, securities, jointly
held with rights of survivorship, are
to be reported on REV-1509, Schedule F.
Stocks and securities accounts held in a
beneficiary form should be reported on
REV-1510, Schedule G.

REV-1503

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