Estate Tax Addendum 2 — Property Used for Farming (Farm Deduction)

# preamble

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Part 1 - Decedent information: 1. First: 2. Middle: 3. Last: 4. Social Security number: Part 2 - Farming property requirements: Complete Part 2 to determine if the estate meets the farm property requirements. You must answer "yes" or "no" to each question. If you answer "no" for any of the questions, the estate is not eligible to claim the farm deduction (do not submit or complete the rest of this form). For question 5, if the decedent was a tenant farmer who did not own any real property, but only owned tangible personal property, mark this question as "yes." A non-land-owning tenant farmer may qualify for the farm deduction if they meet all the other requirements. A land-owning farmer who also is a tenant farmer must answer question 5 accordingly. Question Yes or no? 1. Is the farm property included in the decedent's tentative taxable estate on the estate tax return (Part 2 - Tax Computation, Line 3)? Yes No 2. Was the decedent a citizen or resident of the United States at the time of his or her death? Yes No 3. Does the farm property pass from the decedent to a qualified heir? Yes No 4. On the date of death was the decedent or a member of the decedent's family using the land and/or equipment for a farming purpose? Yes No 5. During the eight-year period ending on the date of the death of the decedent, have there been: • Periods aggregating five years or more during which the farm's real property was owned by the decedent or a member of the decedent's family, AND • Was there material participation in the operation of the farm by the decedent or a member of the decedent's family? Yes No

If all questions above are answered "yes" continue completing the rest of the form. Submit this form along with a detailed statement/letter explaining how the decedent's estate qualifies for the farming property deduction. • Define how the decedent, or a member of the decedent's family, materially participated in the farming operation (including number of hours worked per week.) • Explain exactly what type of farming operation is involved. • Define what five-year period applies during the eight years preceding the decedent's death. • Explain how each qualified heir is related to the decedent. Washington State Estate Tax Addendum # 2 Property Used for Farming (Submit only if applicable; see instructions below) Form 85 0050 Ad2 To ask about the availability of this publication in an alternate format for the visually impaired, please call 360-705-6705. Teletype (TTY) users may use the WA Relay Service by calling 711. Audit - Estate Tax PO Box 47474 Olympia WA 98504-7474

REV 85 0050Ad2 (8/11/25) Page 2 of 5 Washington State Estate Tax Addendum # 2 Part 3 - Property used for farming deduction calculation: 1. Decedent's gross estate from the estate tax return 1. (Part 2 - Tax Computation, Line 1) 2. Unpaid mortgages or other indebtedness in respect to farm property included in gross estate (see instructions). 2. 3. Adjusted gross estate for determining the farm deduction (Line 1 less Line 2). 3. 4. Farm property (qualified real property, tangible personal property or real property): Schedule/item Brief description Fair market value at valuation date Subtotal from sheets attached to this addendum, if any: Spouse's community property value of qualified real property: Total value of farm property assets to calculate percentage. 4. 5. Percentage of adjusted gross estate (Line 4 divided by Line 3) . 5. If Line 5 equals less than 0.50 (less than 50%), STOP , the estate is not eligible to take the farm deduction. Do not enter a value on the estate tax return (Part 2 - Tax Computation, Line 4a) or on Line 6 or 7 below. If the Line 5 calculation equals 0.50 or more (50% or more), you may continue on to Line 6. 6. Spouse's community property value of qualified real property (if used in percentage calculation above, otherwise enter zero). 6. 7. Allowable farm property deduction amount: If Line 5 equals 0.50 or more and all questions in Part 2 above are answered "yes," enter the amount of the decedent's farm property (Line 4 less Line 6). You are eligible for the farm property deduction; take this amount to the estate tax return (Part 2 - Tax Computation, Line 4a) 7. This amount, or portion thereof, may also be used in the calculations for Addendum # 3 or # 4, if either is applicable. Executor: I agree and attest to the following: • I am the executor of the decedent's estate. • Under penalty of law, I declare that, to the best of my knowledge and belief, this addendum is true, correct, and complete. Signature of executor: Date: Phone:

REV 85 0050Ad2 (8/11/25) Page 3 of 5 Addendum # 2 - Property used for farming (farm deduction) information Who must file This addendum must be completed and filed with the Washington State Estate and Transfer Tax Return if the decedent died on or after Jan. 1, 2014, and the estate is eligible to deduct property used for farming. Applicable laws and rules The applicable laws and rules are Revised Code of Washington (RCW) 83.100.046 and Washington Administrative Code (WAC) 458-57-155. These instructions contain a general overview; see the applicable laws and rules for complete details. Property used for farming In determining the farm deduction, "farm property" is any tangible personal property or real property used for farming purposes. Farm property can include, but is not limited to, stock, dairy or furbearing animals, ranches, nurseries, greenhouses and other similar structures, orchards, woodlands, timber planting, cultivating or cutting, and/or the machinery and equipment used for farming purposes. "Farming purposes" can include, but is not limited to, cultivating the soil, raising agricultural commodities, harvesting horticultural commodities, or handling or packing of agricultural commodities in an unmanufactured state if over one-half of the commodities are produced by such farm. What can be deducted The value of farm property, wherever located, included in the gross estate can be deducted if all the requirements are met. This deduction is in addition to the applicable exclusion amount. The heirs to the farm property are not required to repay the tax if they do not continue farming. If the decedent leased the farm property out to a third party, the deduction cannot be used by the decedent. However, if the lessee is the decedent, that tenant farmer may qualify for the farm deduction if certain requirements are met. The deduction amount is unlimited. Farm property in a closely-held partnership, corporation, or trust can qualify for the deduction if all requirements are met. For a trust, the decedent or applicable member of the decedent's family must be the present-interest beneficiary in such trust. What are the general requirements The following requirements must be met to be eligible for the farm deduction whether the property is qualified real property (i.e. land, barn), tangible personal property (i.e. equipment) or real property (i.e. ranch house): • The decedent was a citizen or resident of the United States. • The farm property passes to or is acquired by a qualified heir (a member of the decedent's family). • The farm property is used for a qualified use (farm property used for a farming purpose) by the decedent or a member of the decedent's family. For tangible personal property, it must be used for a qualified use by the decedent, a member of the decedent's family, or an employee of the farm • The farm property consists of 50% or more of the adjusted gross estate (gross estate less any mortgage or indebtedness on such farm property). Real property additional requirements The following two requirements must be met with respect to real property (i.e. ranch house): • For the eight-year period ending on the date of death, there must be an aggregate of five years or more that such property is owned by the decedent or a member of the decedent's family. (See RCW 83.100.046(7) for one exception to the period ending on "the date of death" for qualified real property.) • There must be material participation by the decedent or a member of the decedent's family in the real property. Qualified real property additional requirement The following requirem ents must be met with respect to qualified real property (i.e. land, barn): • The real property makes up 25% or more of the adjusted gross value of the estate. • For the eight-year period ending on the date of death, there must be an aggregate of five years or more that such property is owned by the decedent or a member of the decedent's family. (See RCW 83.100.046(7) for one exception to the period ending on "the date of death" for qualified real property.) • There must be material participation by the decedent or a member of the decedent's family in such real property. Tangible personal property use For tangible personal property, it must be used for a qualified use, but it can be used by the decedent, a member of the decedent's family, or, for estates with decedent's death on or after July 1, 2025, an employee of the farm hired by the decedent or a member of the decedent's family.

REV 85 0050Ad2 (8/11/25) Page 4 of 5 Who qualifies as a member of the decedent's family A "member of the decedent's family" refers only to a decedent's ancestor, spouse, state registered domestic partner, lineal descendant, spouse's lineal descendant, state registered domestic partner's lineal descendant, parent's lineal descendant, or spouse of a lineal descendant. A legally adopted child of an individual is considered a child of an individual by blood. What is material participation The decedent or a member of the decedent's family (the individual) is considered to materially participate if they work on a continuous and substantial basis in the operation of the farm. This generally means the individual works at least 35 hours each week, no one else works more hours than the individual in the operation of the farm, and no one else receives compensation for managing the operation (an agent or trustee does not qualify). The individual should be the one making a substantial number of the management decisions. --------------------------------------------------------------------------------------------------------------------------------------- Addendum # 2 - Property used for farming (farm deduction) instructions

# Part 1 - Decedent information

Items 1-4 - Decedent's information Enter the decedent's full name and social security number. The last name field can include a suffix.

# Part 2 - Farming property requirements

Check the appropriate box for each question. The estate can only take the farm deduction, if all questions are answered "yes." If any question is answered "no," the estate may not take the farm deduction; do not complete or submit the addendum with your estate tax return. If all questions are answered "yes," a separate statement fully detailing how the estate qualifies for the farm deduction must be submitted along with the completed form. Line 1 - Farm property included Check the "yes" box if the farm property being deducted is included in the decedent's gross estate. Check the "no" box if farm property is not included in the decedent's gross estate. Line 2 - Decedent citizenship Check the "yes" box if the decedent was a citizen or resident of the United States on the date of death. Check the "no" box if the decedent was not a citizen or resident of the United States on the date of death. Line 3 - Qualified heir Check the "yes" box if the farm property passes to or is acquired by a qualified heir. Check the "no" box if the farm property does not pass to or is not acquired by a qualified heir. A qualified heir is any member of the decedent's family ("member of decedent's family" is defined above). Line 4 - Qualified use Check the "yes" box if the farm property was being used for a farming purpose by the decedent or a member of the decedent's family on the decedent's date of death. Check the "no" box if the farm property was not being used for a farming purpose by the decedent or a member of the decedent's family on the decedent's date of death. Farm property must be used for a qualified use to qualify for the farm deduction. The basic definition of "qualified use" is farmland or equipment used for a farming purpose. The heirs do not need to continue using the farm property for a qualified use after the date of death. The farm property must be used by the decedent or a member of the decedent's family. Tangible personal property may be used by an employee of the farm. Farm property leased to an unrelated individual cannot qualify for the farm deduction. Line 5 - Five-year aggregate ownership and material participation Check the "yes" box if during the eight-year period ending on the date of decedent's death, there have been periods aggregating five or more years during which farm real property was owned and there was material participation by the decedent or a member of the decedent's family. Check the "no" box if the farm real property was not owned or there was not material participation for an aggregate of five years or more during the eight-year period ending on the date of decedent's death. A deceased tenant farmer's estate that does not own any real property may check this line "yes" to qualify for the farm deduction, as long as all other questions are answered "yes." If the tenant farmer owns real property that is included in the farm deduction, the ownership and material participation rules apply, and this line must be answered appropriately.

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# Part 3 - Farming deduction calculation

Line 1 - Gross estate Enter the decedent's gross estate from the Washington estate tax return. This amount can be found on the estate tax return (either Part 2 - Tax Computation, line 1 or Part 5 - Recapitulation, line 12). Line 2 - Mortgage or indebtedness Enter the total of any unpaid mortgages or indebtedness on any farm property that will be listed on the line 4 table. The unpaid mortgages on, or any indebtedness in respect of, such farm property must be reported as allowable deductions on Schedules J through L of the estate tax return. The unpaid mortgages or indebtedness amount includes any accrued interest outstanding as of the decedent's date of death. Line 3 - Adjusted gross estate Enter the result of line 1 less line 2. This is the adjusted gross estate for determining the farm deduction's 50% of adjusted gross estate qualification. Line 4 - Farm property List each farm property item included in the gross estate that meets the general requirements from page 3 above. Identify the farm property by schedule and item number from the estate tax return (Schedules A through I). Give a brief description of the farm property (a full description should already be included on the appropriate schedules). Enter the fair market value as reported on the schedule. If using alternate value, report the alternate value rather than the date of death value. If there is more farm property than will fit on the addendum, attach a sheet with similar format to continue the farm property. Sum the attached sheet(s) and bring the total forward to the subtotal line. Enter the sum of all farm property listed on the addendum and any attached sheets on line 4. For any qualified real property (i.e. land, barn) in a community property estate (decedent is first to die), the spouse's portion of the community property value of the qualified real property can be added to the total value of farm property. In essence, for the qualified real property only (not the ranch house, nor equipment), the real property is treated as separate property in order to ensure that the estate can qualify for the farming deduction. Add the spouse's community property value of the qualified real property in the field provided and include that amount in the total on line 4, if needed to reach the 50% percent requirement. Line 5 - Percentage of adjusted gross Enter the result of line 4 divided by line 3. If line 5 is less than 0.50, the estate is not eligible for the farm deduction. Do not complete or submit this addendum. If line 5 is 0.50 or more and all questions of part 2 are answered "yes," the estate is eligible to take the farm deduction. Line 6 - Spouse's community property value Reenter the portion of the spouse's community property value from the line 4 calculation. This amount may only be used to reach the 50% percent requirement; the amount cannot be deducted as part of the decedent's farm deduction. If this value was not used in line 4 calculation, enter zero. Line 7 - Farm deduction amount If all questions of part 2 are answered "yes" and line 5 is 0.50 or more, then you may enter the result of the line 4 less line 6. This amount can now be carried forward to the tax calculation of the Washington estate tax return (Part 2 - Tax Computation, line 4a). Executor agreement and attestation Executor signature The executor, on behalf of the estate, must read and agree to the statements listed, then sign, provide a contact telephone number and date this addendum. Filing requirements Attach the completed addendum to the end of the Washington estate tax return (after the applicable schedules) when filing by mail. Documents to include Don't forget to include the statement fully explaining how the estate qualifies for the farm deduction.