Pennsylvania Schedule A - Real Estate (Instructions)

Schedule A - Real Estate (Instructions)
Instructions for REV-1502 Schedule A - Real Estate
Instructions for REV-1502 Schedule A
Real Estate

REV-1502 EX (10-15)

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use REV-1502 Schedule A to report all
Pennsylvania real estate 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
Report the physical street address of
the property and the parcel ID number.
When reporting the fractional interest in
a parcel of real property owned as a
tenant-in-common, state the decedent’s
fractional interest, include the full value
of the property with the description, and
enter only the value of the decedent’s
interest in the column marked, “Value
at Date of Death”. Supply a copy of the
deed showing the fractional interest.
VALUE AT DATE OF DEATH
Estates are required to report all real
estate at the fair market value as of
the date of death. Fair market value is
defined as the price at which the
property would be sold by a willing
seller, not compelled to sell, to a willing
buyer, not compelled to buy, when both
have reasonable knowledge of the
relevant facts.

www.revenue.pa.gov

There are three methods to value the
property at date of death: sale price,
appraisal value or county tax assessment
multiplied by the common level ratio
factor.
The Department of Revenue allows up
to 15 months after the date of death
to report a sale price. If you use the
sale price, you must report the gross
sales price.
Important. Attach a copy of the
tax assessment notice, certified
appraisal, or settlement sheet (HUD1)
used to value the real property.
If the real estate was sold to a family
member or anyone associated with
the administration of the estate, an
appraisal or other documentary evidence
of the fair market value must be
submitted to verify that the real estate
was sold at the fair market value.
Important. Sale price can only
be reported if the real estate
was sold within 15 months of the date
of death.
Special Farm Use Valuation
For dates prior to July 1, 2012, land
devoted to agricultural use, agriculture
reserve or forest reserve may be eligible
for preferential assessment measured
by particular use, rather than by fair
market value. This preferential valuation
may be used to determine county property tax assessments. If you elect to use
this method of valuation, the special
use valuation under the Pennsylvania
Farmland and Forest Land Assessment
Act of 1974, 72 P.S. §5490.1, et. seq.
must be reported. You will also be
required to submit fair market value
appraisals of the residential property,
farm outbuildings and agricultural

property so that a proper valuation may
be made if the special use is discontinued
or if the property does not meet all
requirements.
Agriculture Exemptions
For dates of death on or after July 1,
2012, real estate that qualifies under
the Agriculture Exemptions enacted by
Act 85 of 2012 may be exempt from
inheritance tax. For more information,
refer to Inheritance Tax Informational
Notice Inheritance tax 2012-01.
Note. Real estate held between a
decedent and his or her surviving
spouse as either tenants by the
entireties or joint tenants with right of
survivorship for more than one year
prior to the decedent's death is exempt
from inheritance tax.
Note. Real estate situated outside
of Pennsylvania is exempt from
Pennsylvania inheritance tax unless
under contract to sell prior to death.
See REV-1508, Schedule E.
TOTAL
Total all items in the Value at Date of
Death column and enter value here.
Enter this value on Line 1, Page 2 of the
REV-1500.
Caution. A retained life estate
is fully taxable and should be
reported on REV-1510, Schedule G.
Real estate held as joint with right of
survivorship, except between spouses, is
reportable on REV-1509, Schedule F.
All real estate held in a trust should be
reported on REV-1510, Schedule G.
The decedent’s indebtedness for any
mortgages on the real estate reported
on this schedule should be claimed on
REV-1512, Schedule I.

REV-1502

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