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Federal housing law

Form 706 (Schedule U) — Qualified Conservation Easement Exclusion

Federal housing law as enacted — verbatim and citable.

Edition
2026-10-03
Last updated
2026-10-04
Jurisdiction
United States
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Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/f706su.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

SCHEDULE U (Form 706) (August 2025)

Department of the Treasury Internal Revenue Service

Qualified Conservation Easement Exclusion

Attach to Form 706. Go to www.irs.gov/Form706 for instructions and the latest information.

OMB No. 1545-0015

Decedent’s name as it appears on Form 706 Decedent’s social security number

Part I Election

The executor is deemed to have made the election under section 2031(c)(6) if the executor files Schedule U (Form 706) and excludes any qualifying conservation easements from the gross estate.

Part II General Qualifications 1 Describe the land subject to the qualified conservation easement. See instructions.

2 Did the decedent or a member of the decedent’s family own the land described above during the 3-year period ending on the date of the decedent’s death? . . . . . . . . . . . . . . . . . . . . . . Yes No 3 Describe the conservation easement with regard to which the exclusion is being claimed. See instructions.

Part III Computation of Exclusion

4
Estate tax value of the land subject to the qualified conservation easement. See instructions
.
**5 **
Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions .
.
.
.
.
.
.
5
6
Add lines 4 and 5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Value of retained development rights on the land. See instructions
.
7
8
Subtract line 7 from line 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9
Multiply line 8 by 30% (0.30) .
.
.
.
.
.
.
.
.
.
.
.
.
9
10
Value of qualified conservation easement for which the exclusion is
being claimed. See instructions .
.
.
.
.
.
.
.
.
.
.
.
10
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.
11
Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.
12

Subtract line 11 from 0.300. Enter the answer in hundredths by
rounding any thousandths up to the next higher hundredth (that is,
0.030 = 0.03, but 0.031 = 0.04) .
.
.
.
.
.
.
.
.
.
.
.
12
13
Multiply line 12 by 2.0 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from 0.40 .
.
.
.
.
.
.
.
.
.
.
.
.
.
14
15
Deduction under section 2055(f) for the conservation easement. See
instructions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
16
Amount of indebtedness on the land. See instructions .
.
.
.
.
16
17
Total reductions in value. Add lines 7, 15, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18
Net value of land. Subtract line 17 from line 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Multiply line 18 by line 14 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.		 4
4
Estate tax value of the land subject to the qualified conservation easement. See instructions
.
**5 **
Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions .
.
.
.
.
.
.
5
6
Add lines 4 and 5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Value of retained development rights on the land. See instructions
.
7
8
Subtract line 7 from line 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9
Multiply line 8 by 30% (0.30) .
.
.
.
.
.
.
.
.
.
.
.
.
9
10
Value of qualified conservation easement for which the exclusion is
being claimed. See instructions .
.
.
.
.
.
.
.
.
.
.
.
10
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.
11
Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.
12

Subtract line 11 from 0.300. Enter the answer in hundredths by
rounding any thousandths up to the next higher hundredth (that is,
0.030 = 0.03, but 0.031 = 0.04) .
.
.
.
.
.
.
.
.
.
.
.
12
13
Multiply line 12 by 2.0 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from 0.40 .
.
.
.
.
.
.
.
.
.
.
.
.
.
14
15
Deduction under section 2055(f) for the conservation easement. See
instructions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
16
Amount of indebtedness on the land. See instructions .
.
.
.
.
16
17
Total reductions in value. Add lines 7, 15, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18
Net value of land. Subtract line 17 from line 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Multiply line 18 by line 14 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.		 17

Part III Computation of Exclusion

4
Estate tax value of the land subject to the qualified conservation easement. See instructions
.
**5 **
Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions .
.
.
.
.
.
.
5
6
Add lines 4 and 5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Value of retained development rights on the land. See instructions
.
7
8
Subtract line 7 from line 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9
Multiply line 8 by 30% (0.30) .
.
.
.
.
.
.
.
.
.
.
.
.
9
10
Value of qualified conservation easement for which the exclusion is
being claimed. See instructions .
.
.
.
.
.
.
.
.
.
.
.
10
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.
11
Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.
12

Subtract line 11 from 0.300. Enter the answer in hundredths by
rounding any thousandths up to the next higher hundredth (that is,
0.030 = 0.03, but 0.031 = 0.04) .
.
.
.
.
.
.
.
.
.
.
.
12
13
Multiply line 12 by 2.0 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from 0.40 .
.
.
.
.
.
.
.
.
.
.
.
.
.
14
15
Deduction under section 2055(f) for the conservation easement. See
instructions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
16
Amount of indebtedness on the land. See instructions .
.
.
.
.
16
17
Total reductions in value. Add lines 7, 15, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18
Net value of land. Subtract line 17 from line 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Multiply line 18 by line 14 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.		 18
4
Estate tax value of the land subject to the qualified conservation easement. See instructions
.
**5 **
Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions .
.
.
.
.
.
.
5
6
Add lines 4 and 5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Value of retained development rights on the land. See instructions
.
7
8
Subtract line 7 from line 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9
Multiply line 8 by 30% (0.30) .
.
.
.
.
.
.
.
.
.
.
.
.
9
10
Value of qualified conservation easement for which the exclusion is
being claimed. See instructions .
.
.
.
.
.
.
.
.
.
.
.
10
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.
11
Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.
12

Subtract line 11 from 0.300. Enter the answer in hundredths by
rounding any thousandths up to the next higher hundredth (that is,
0.030 = 0.03, but 0.031 = 0.04) .
.
.
.
.
.
.
.
.
.
.
.
12
13
Multiply line 12 by 2.0 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from 0.40 .
.
.
.
.
.
.
.
.
.
.
.
.
.
14
15
Deduction under section 2055(f) for the conservation easement. See
instructions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
16
Amount of indebtedness on the land. See instructions .
.
.
.
.
16
17
Total reductions in value. Add lines 7, 15, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18
Net value of land. Subtract line 17 from line 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Multiply line 18 by line 14 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.		 19

Part III Computation of Exclusion

4
Estate tax value of the land subject to the qualified conservation easement. See instructions
.
**5 **
Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions .
.
.
.
.
.
.
5
6
Add lines 4 and 5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Value of retained development rights on the land. See instructions
.
7
8
Subtract line 7 from line 6 .
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9
Multiply line 8 by 30% (0.30) .
.
.
.
.
.
.
.
.
.
.
.
.
9
10
Value of qualified conservation easement for which the exclusion is
being claimed. See instructions .
.
.
.
.
.
.
.
.
.
.
.
10
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.
11
Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.
12

Subtract line 11 from 0.300. Enter the answer in hundredths by
rounding any thousandths up to the next higher hundredth (that is,
0.030 = 0.03, but 0.031 = 0.04) .
.
.
.
.
.
.
.
.
.
.
.
12
13
Multiply line 12 by 2.0 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from 0.40 .
.
.
.
.
.
.
.
.
.
.
.
.
.
14
15
Deduction under section 2055(f) for the conservation easement. See
instructions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
16
Amount of indebtedness on the land. See instructions .
.
.
.
.
16
17
Total reductions in value. Add lines 7, 15, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18
Net value of land. Subtract line 17 from line 4 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Multiply line 18 by line 14 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.		 20

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 706. Cat. No. 94779E Schedule U (Form 706) (8-2025) Created 4/17/25

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