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the decedent but payable to date. Both trading dates must be letters furnishing these quotations or stockholders of record on a date after reasonably close to the valuation date. evidence of sale. the decedent’s death are not includible 2. Prorate the difference between in the gross estate for federal estate tax the mean prices to the valuation date. Schedule C—Mortgages, purposes and should not be listed here. 3. Add or subtract (whichever Notes, and Cash applies) the prorated part of the Description difference to or from the mean price Complete Schedule C and file it with Stocks. For stocks, indicate: figured for the nearest trading date your return if the total gross estate • Number of shares; before the valuation date. contains any: • Whether common or preferred; • Mortgages, If no actual sales were made • Issue; • Notes, or reasonably close to the valuation date, • Par value where needed for • Cash. make the same computation using the identification; List on Schedule C: mean between the bona fide bid and • Price per share; • Mortgages and notes payable to the asked prices instead of sales prices. If • Exact name of corporation; decedent at the time of death. actual sales prices or bona fide bid and • Principal exchange upon which sold, • Cash the decedent had at the date of asked prices are available within a if listed on an exchange; and death. reasonable period of time before the • Nine-digit CUSIP number (defined Note. Do not list mortgages and notes valuation date but not after the below). payable by the decedent on Schedule valuation date, or vice versa, use the Bonds. For bonds, indicate: C. (If these are deductible, list them on mean between the highest and lowest • Quantity and denomination; Schedule K.) sales prices or bid and asked prices as • Name of obligor; the FMV. • Date of maturity; List the items on Schedule C in the For example, assume that sales of • Interest rate; following order: stock nearest the valuation date (June • Interest due date; 15) occurred 2 trading days before • Principal exchange, if listed on an 1. Mortgages; (June 13) and 3 trading days after exchange; and 2. Promissory notes; (June 18). On those days, the mean • Nine-digit CUSIP number. 3. Contracts by decedent to sell sale prices per share were $10 and land; If the stock or bond is unlisted, show $15, respectively. Therefore, the price 4. Cash in possession; and the company’s principal business office. of $12 is considered the FMV of a 5. Cash in banks, savings and loan If the gross estate includes any share of stock on the valuation date. If, associations, and other types of interest in a trust, partnership, or however, on June 13 and 18, the mean financial organizations. closely held entity, provide the sale prices per share were $15 and employer identification number (EIN) of What to enter in the “Description” $10, respectively, the FMV of a share the entity in the description column on column: of stock on the valuation date is $13. Schedules B, E, F, G, M, and O, where For mortgages, list: If only closing prices for bonds are applicable. You must also provide the • Face value, available, see Regulations section EIN of the estate (if any) in the • Unpaid balance, 20.2031-2(b). description column on the above-noted • Date of mortgage, Apply the rules in the section 2031 schedules, where applicable. • Name of maker, regulations to determine the value of The CUSIP (Committee on Uniform • Property mortgaged, inactive stock and stock in close Security Identification Procedure) • Date of maturity, corporations. Attach to Schedule B number is a nine-digit number that is • Interest rate, and complete financial and other data used assigned to all stocks and bonds traded • Interest date. to determine value, including balance on major exchanges and many unlisted Example to enter in “Description” sheets (particularly the one nearest to securities. Usually, the CUSIP number column: “Bond and mortgage of the valuation date) and statements of is printed on the face of the stock $50,000, unpaid balance: $17,000; the net earnings or operating results certificate. If you do not have a stock dated: January 1, 1992; John Doe to and dividends paid for each of the 5 certificate, the CUSIP may be found on Richard Roe; premises: 22 Clinton years immediately before the valuation the broker’s or custodian’s statement or Street, Newark, NJ; due: January 1, date. by contacting the company’s transfer 2012; interest payable at 10% a Securities reported as of no value, of agent. year—January 1 and July 1.” nominal value, or obsolete should be For promissory notes, list in the listed last. Include the address of the same way as mortgages. Valuation company and the state and date of the For contracts by the decedent to sell incorporation. Attach copies of List the FMV of the stocks or bonds. land, list: correspondence or statements used to The FMV of a stock or bond (whether • Name of purchaser, determine the “no value.” listed or unlisted) is the mean between • Contract date, the highest and lowest selling prices If the security was listed on more • Property description, quoted on the valuation date. If only the than one stock exchange, use either • Sale price, closing selling prices are available, then the records of the exchange where the • Initial payment, the FMV is the mean between the security is principally traded or the • Amounts of installment payment, quoted closing selling price on the composite listing of combined • Unpaid balance of principal, and valuation date and on the trading day exchanges, if available, in a publication • Interest rate. before the valuation date. of general circulation. In valuing listed For cash on hand, list such cash stocks and bonds, you should carefully If there were no sales on the separately from bank deposits. check accurate records to obtain values valuation date, figure the FMV as for the applicable valuation date. follows: For cash in banks, savings and loan 1. Find the mean between the If you get quotations from brokers, or associations, and other types of highest and lowest selling prices on the evidence of the sale of securities from financial organizations, list: nearest trading date before and the the officers of the issuing companies, • Name and address of each financial nearest trading date after the valuation attach to the schedule copies of the organization, -18- Part Instructions