N.M. Code R. § 3.8.4.9 - REAL PROPERTY AND RIGHTS TO REAL PROPERTY LOCATED IN NEW MEXICO

A. The listing in Subsection C of Section 7-7-4 NMSA 1978 of property located in New Mexico is illustrative; it is not an exhaustive listing.

B. Real property in this state belonging to a nonresident decedent is subject to the estate tax. Intangible personal property outside the state belonging to a nonresident decedent is not subject to the tax. If a nonresident decedent owning real property situated within the state has entered into an executory contract for its sale, the right of the decedent, his estate or heirs to the proceeds of the sale will be treated as subject to the tax should the state in which the nonresident decedent was domiciled not subject the proceeds to its own inheritance or estate tax law, either on application of the so-called "doctrine of equitable conversion" or for any other reason. If a nonresident decedent has entered into an executory contract for the purchase of real property situated within the state, the right of the nonresident decedent, his estate or heirs to the real property will be treated as subject to the tax should the state in which the nonresident decedent was domiciled not subject the value of or right to the real property to its own inheritance or estate tax law.

C. Real property in this state belonging to a nonresident decedent includes royalty interests in oil, gas, or similar leases or property interests.

D. For the purposes of the Estate Tax Act, mortgages are considered personal property.

Notes

N.M. Code R. § 3.8.4.9

8/5/74, 9/15/88, 7/15/96; 3.8.4.9 NMAC - Rn & A, 3 NMAC 8.4.9, 12/14/00