Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return Page 5
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41Form 706 (Rev. 8-93)
Instructions for Schedule A—Real Estate
Enter the amount of the mortgage under
‘‘Description’’ on this schedule. The unpaid amount of
If the total gross estate contains any real estate, you
the mortgage may be deducted on Schedule K. If the
must complete Schedule A and file it with the return.
decedent’s estate is NOT liable for the amount of the
On Schedule A list real estate the decedent owned or
mortgage, report only the value of the equity of
had contracted to purchase. Number each parcel in
redemption (or value of the property less the
the left-hand column.
indebtedness) in the value column as part of the gross
estate. Do not enter any amount less than zero. Do not
Describe the real estate in enough detail so that the
deduct the amount of indebtedness on Schedule K.
IRS can easily locate it for inspection and valuation.
For each parcel of real estate, report the area and, if
Also list on Schedule A real property the decedent
the parcel is improved, describe the improvements. For
contracted to purchase. Report the full value of the
city or town property, report the street and number,
property and not the equity in the value column.
ward, subdivision, block and lot, etc. For rural property,
Deduct the unpaid part of the purchase price on
report the township, range, landmarks, etc.
Schedule K.
If any item of real estate is subject to a mortgage for
Report the value of real estate without reducing it for
which the decedent’s estate is liable, that is, if the
homestead or other exemption, or the value of dower,
indebtedness may be charged against other property
curtesy, or a statutory estate created instead of dower
of the estate that is not subject to that mortgage, or if
or curtesy.
the decedent was personally liable for that mortgage,
Explain how the reported values were determined
you must report the full value of the property in the
and attach copies of any appraisals.
value column.
Schedule A Examples
In this example, the alternate valuation is not adopted; the date of death is January 1, 1993.
Item
Alternate
Alternate
Value at
Description
number
valuation date
value
date of death
1
House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent
of $2,700 due at end of each quarter, February 1, May 1, August 1, and November
1. Value based on appraisal, copy of which is attached
108,000
Rent due on item 1 for quarter ending November 1, 1992, but not collected at date
of death
2,700
Rent accrued on item 1 for November and December 1992
1,800
2
House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $600
payable monthly. Value based on appraisal, copy of which is attached
96,000
Rent due on item 2 for December 1992, but not collected at date of death
600
In this example, alternate valuation is adopted; the date of death is January 1, 1993.
Item
Alternate
Alternate
Value at
Description
number
valuation date
value
date of death
1
House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent
of $2,700 due at end of each quarter, February 1, May 1, August 1, and November
1. Value based on appraisal, copy of which is attached. Not disposed of within 6
months following death
7/1/93
90,000
108,000
Rent due on item 1 for quarter ending November 1, 1992, but not collected until
February 1, 1993
2/1/93
2,700
2,700
Rent accrued on item 1 for November and December 1992, collected on February
1, 1993
2/1/93
1,800
1,800
2
House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $600
payable monthly. Value based on appraisal, copy of which is attached. Property
exchanged for farm on May 1, 1993
5/1/93
90,000
96,000
Rent due on item 2 for December 1992, but not collected until February 1, 1993
2/1/93
600
600
Schedule A—Page 5
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