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Schedule A–Example 1 In this example, alternate valuation is not adopted; the date of death is January 1, 2011. Item Description Alternate Alternate Value at Number Valuation Value date of Date death 1 House and lot, 1921 William Street, NW, Washington, DC (lot 6, square 481). Rent of $550,000 $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, 2010, but not collected at date of 8,100 death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent accrued on Item 1 for November and December 2010 . . . . . . . . . . . . . . . . . . . . . 5,400 2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 375,000 payable monthly. Value based on appraisal, copy of which is attached . . . . . . . . . . . . . Rent due on Item 2 for December 2010, but not collected at death . . . . . . . . . . . . . . . . 1,800 gross estate does not contain any • Schedule I if you answered “Yes” to Schedule A—Real Estate includible assets covered by that item. question 15 of Part 4. If the total gross estate contains any Do not enter any amounts in the real estate, you must complete Exclusion “Alternate value” column unless you Schedule A and file it with the return. Item 11. Conservation easement elected alternate valuation on line 1 of On Schedule A, list real estate the exclusion. You must complete and Part 3—Elections by the Executor on decedent owned or had contracted to attach Schedule U (along with any page 2 of the Form 706. purchase. Number each parcel in the required attachments) to claim the left-hand column. Which schedules to attach for items exclusion on this line. 1 through 9. You must attach: Describe the real estate in enough Deductions • Schedule F to the return and answer detail so that the IRS can easily locate its questions even if you report no it for inspection and valuation. For each Items 13 through 21. You must assets on it; parcel of real estate, report the area attach the appropriate schedules for the • Schedules A, B, and C if the gross and, if the parcel is improved, describe deductions you claim. estate includes any (1) Real Estate, (2) the improvements. For city or town Item 17. If item 16 is less than or Stocks and Bonds, or (3) Mortgages, property, report the street and number, equal to the value (at the time of the Notes, and Cash, respectively; ward, subdivision, block and lot, etc. decedent’s death) of the property • Schedule D if the gross estate For rural property, report the township, subject to claims, enter the amount includes any life insurance or if you range, landmarks, etc. from item 16 on item 17. answered “Yes” to question 8a of Part If the amount on item 16 is more If any item of real estate is subject to 4—General Information; than the value of the property subject to a mortgage for which the decedent’s • Schedule E if the gross estate claims, enter the greater of: estate is liable, that is, if the contains any jointly owned property or if • The value of the property subject to indebtedness may be charged against you answered “Yes” to question 9 of claims or other property of the estate that is not Part 4; • The amount actually paid at the time subject to that mortgage, or if the • Schedule G if the decedent made the return is filed. decedent was personally liable for that any of the lifetime transfers to be listed mortgage, you must report the full value on that schedule or if you answered In no event should you enter more of the property in the value column. “Yes” to question 11 or 12a of Part 4; on item 17 than the amount on item 16. Enter the amount of the mortgage • Schedule H if you answered “Yes” to See section 2053 and the related under “Description” on this schedule. question 13 of Part 4; and regulations for more information. Schedule A–Example 2 In this example, alternate valuation is adopted; the date of death is January 1, 2011 Item Description Alternate Alternate Value at Number Valuation Value date of Date death 1 House and lot, 1921 William Street, NW, Washington, DC (lot 6, square 481). Rent of 7/1/11 $535,000 $550,000 $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, 2010, but not collected until 2/1/11 8,100 8,100 February 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent accrued on Item 1 for November and December 2010, collected on February 1, 2/1/11 5,400 5,400 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of 5/1/11 369,000 375,000 $1,800 payable monthly. Value based on appraisal, copy of which is attached. Property exchanged for farm on May 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent due on Item 2 for December 2010, but not collected until February 1, 2011 . . . . 2/1/11 1,800 1,800 -14- Part Instructions