Schedule — Instruction 706 — Instructions for Form 706

Caution: If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part V, Item 10, for information on how to estimate and report the value of these assets.

If the total gross estate contains any real estate, complete Schedule A (Form 706) and file it with the return. On Schedule A (Form 706), list real estate the decedent owned or had contracted to purchase. Number each parcel under column (i).

Describe the real estate in enough detail so that the IRS can easily locate it for inspection and valuation. For each parcel of real estate, report the area and, if the parcel is improved, describe the improvements. For city or town property, report the street and number, ward, subdivision, block and lot, etc. For rural property, report the township, range, landmarks, etc.

If any item of real estate is subject to a mortgage for which the decedent’s estate is liable, that is, if the indebtedness may be charged against other property of the estate that is not subject to that mortgage, or if the decedent was personally liable for that mortgage, you must report the full value of the property under column (v), Value at date of death. Enter the amount of the mortgage under column (ii), Description. The unpaid amount of the mortgage may be deducted on Schedule K (Form 706).

If the decedent’s estate is not liable for the amount of the mortgage, report only the value of the equity of redemption (or value of the property less the indebtedness) under column (v), Value at date of death, as part of the gross estate. Do not enter any amount less than zero. Do not deduct the amount of indebtedness on Schedule K (Form 706).

Also list on Schedule A (Form 706) real property the decedent contracted to purchase. Report the full value of the property and not the equity under column (v), Value at date of death. Deduct the unpaid part of the purchase price on Schedule K (Form 706).

Report the value of real estate without reducing it for homestead or other exemption, or the value of dower, curtesy, or a statutory estate created instead of dower or curtesy.

Explain how the reported values were determined and attach copies of any appraisals.

Section D requests information on all DSUE amounts received from the decedent’s last deceased spouse and any previously deceased spouses. Each line in the chart should reflect a different predeceased spouse; enter the calendar year(s) in column F.

On line 1, provide information on the decedent’s last deceased spouse.

24 Instructions for Form 706 (Rev. 7-2026)

Schedule A (Form 706)—Example 1

In this example, alternate valuation is not adopted; the date of death is January 1, 2026.

1 Enter real estate the decedent owned or had contracted to purchase. See instructions.

(i) Item number	(ii) Description	(iii) Alternate valuation date	(iv) Alternate value	(v) Value at date of death
1 2	House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of $8,100 due at the end of each quarter, February 1, May 1, August 1, and November 1. Value based on appraisal, copy of which is attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent due on item 1 for quarter ending November 1, 2025, but not collected at date of death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent accrued on item 1 for November and December 2025 . . . . . . . . . . . . . . . . . . . . House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 payable monthly. Value based on appraisal, copy of which is attached . . . . . . . . . . . . . . Rent due on item 2 for December 2025, but not collected at death . . . . . . . . . . . . . . . .			$550,000 8,100 5,400 375,000 1,800

Schedule A (Form 706)—Example 2

In this example, alternate valuation is adopted; the date of death is January 1, 2026.

1 Enter real estate the decedent owned or had contracted to purchase. See instructions.

(i) Item number	(ii) Description	(iii) Alternate valuation date	(iv) Alternate value	(v) Value at date of death
1 2	House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of $8,100 due at the 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 of date of death . . . . Rent due on item 1 for quarter ending November 1, 2025, but not collected until February 1, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent accrued on item 1 for November and December 2025, collected on February 1, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 payable monthly. Value based on appraisal, copy of which is attached. Property exchanged for farm on May 1, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent due on item 2 for December 2025, but not collected until February 1, 2026 . . . . . . .	7/1/26 2/1/26 2/1/26 5/1/26 2/1/26	$535,000 8,100 5,400 369,000 1,800	$550,000 8,100 5,400 375,000 1,800