Instructions For Form 706 - 2016 Page 24
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54Schedule C—Mortgages,
Name of obligor;
asked prices instead of sales prices. If
Date of maturity;
actual sales prices or bona fide bid and
Notes, and Cash
Interest rate;
asked prices are available within a
Interest due date;
reasonable period of time before the
If any assets to which the
Principal exchange, if listed on an
valuation date but not after the valuation
special rule of Regulations
!
exchange; and
date, or vice versa, use the mean
section 20.2010-2(a)(7)(ii)
CAUTION
Nine-digit CUSIP number.
between the highest and lowest sales
applies are reported on this schedule,
prices or bid and asked prices as the
do not enter any value in the last three
If the stock or bond is unlisted, show the
FMV.
columns. See instructions for line 10 of
company's principal business office.
Part 5–Recapitulation for information on
For example, assume that sales of
If the gross estate includes any
how to estimate and report the value of
stock nearest the valuation date (June
interest in a trust, partnership, or
these assets.
15) occurred 2 trading days before
closely-held entity, provide the
(June 13) and 3 trading days after (June
Complete Schedule C and file it with
employer identification number (EIN) of
18). On those days, the mean sale
your return if the total gross estate
the entity in the description column on
prices per share were $10 and $15,
Schedules B, E, F, G, M, and O. You
contains any:
respectively. Therefore, the price of $12
must also provide the EIN of an estate
Mortgages,
is considered the FMV of a share of
(if any) in the description column on the
Notes, or
stock on the valuation date. If, however,
above-noted schedules, where
Cash.
on June 13 and 18, the mean sale
applicable.
List on Schedule C:
prices per share were $15 and $10,
The CUSIP (Committee on Uniform
Mortgages and notes payable to the
respectively, the FMV of a share of
Security Identification Procedure)
decedent at the time of death.
stock on the valuation date is $13.
number is a nine-digit number that is
Cash the decedent had at the date of
assigned to all stocks and bonds traded
If only closing prices for bonds are
death.
on major exchanges and many unlisted
available, see Regulations section
securities. Usually, the CUSIP number
20.2031-2(b).
Note. Do not list mortgages and notes
is printed on the face of the stock
payable by the decedent on
Apply the rules in the section 2031
certificate. If you do not have a stock
Schedule C. (If these are deductible, list
regulations to determine the value of
certificate, the CUSIP may be found on
them on Schedule K.)
inactive stock and stock in close
the broker's or custodian's statement or
corporations. Attach to Schedule B
by contacting the company's transfer
List the items on Schedule C in the
complete financial and other data used
agent.
following order:
to determine value, including balance
1. Mortgages;
sheets (particularly the one nearest to
Valuation
the valuation date) and statements of
2. Promissory notes;
the net earnings or operating results and
List the FMV of the stocks or bonds. The
3. Contracts by decedent to sell
dividends paid for each of the 5 years
FMV of a stock or bond (whether listed
land;
immediately before the valuation date.
or unlisted) is the mean between the
4. Cash in possession; and
highest and lowest selling prices quoted
Securities reported as of no value, of
5. Cash in banks, savings and loan
on the valuation date. If only the closing
nominal value, or obsolete should be
associations, and other types of
selling prices are available, then the
listed last. Include the address of the
financial organizations.
FMV is the mean between the quoted
company and the state and date of the
closing selling price on the valuation
incorporation. Attach copies of
What to enter in the “Description”
date and on the trading day before the
correspondence or statements used to
column:
valuation date.
determine the “no value.”
For mortgages, list:
Face value,
If there were no sales on the
If the security was listed on more
Unpaid balance,
valuation date, figure the FMV as
than one stock exchange, use either the
Date of mortgage,
follows:
records of the exchange where the
Name of maker,
1. Find the mean between the
security is principally traded or the
Property mortgaged,
highest and lowest selling prices on the
composite listing of combined
Date of maturity,
nearest trading date before and the
exchanges, if available, in a publication
Interest rate, and
nearest trading date after the valuation
of general circulation. In valuing listed
Interest date.
date. Both trading dates must be
stocks and bonds, you should carefully
reasonably close to the valuation date.
check accurate records to obtain values
Example to enter in “Description”
for the applicable valuation date.
column: “Bond and mortgage of
2. Prorate the difference between
$50,000, unpaid balance: $17,000;
the mean prices to the valuation date.
If you get quotations from brokers, or
dated: January 1, 1992; John Doe to
3. Add or subtract (whichever
evidence of the sale of securities from
Richard Roe; premises: 22 Clinton
applies) the prorated part of the
the officers of the issuing companies,
Street, Newark, NJ; due: January 1,
difference to or from the mean price
attach to the schedule copies of the
2015; interest payable at 10% a
figured for the nearest trading date
letters furnishing these quotations or
year—January 1 and July 1.”
before the valuation date.
evidence of sale.
For promissory notes, list in the same
If no actual sales were made
way as mortgages.
reasonably close to the valuation date,
For contracts by the decedent to sell
make the same computation using the
land, list:
mean between the bona fide bid and
-24-
Part Instructions
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