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6. A statement that in the event this consideration received for the • Any indebtedness incurred after the agreement is not timely implemented, easement. If the date of death value of acquisition if the indebtedness would that they will report the additional tax on the easement is different from the value not have been incurred but for the whatever return is required by the IRS at the time the consideration was acquisition and the incurrence of the and will file the return and pay the received, you must reduce the value of indebtedness was reasonably additional tax by the last day of the 6th the easement by the same proportion foreseeable at the time of the month following the applicable date that the consideration received bears to acquisition; and described above. the value of the easement at the time it • The extension, renewal, or was granted. For example, assume the refinancing of acquisition indebtedness. All parties to the agreement must value of the easement at the time it was sign the agreement. granted was $100,000 and $10,000 For an example of an agreement Continuation Schedule was received in consideration for the containing some of the same terms, easement. If the easement was worth When you need to list more assets or see Part 3 of Schedule A-1 (Form 706). $150,000 at the date of death, you deductions than you have room for on must reduce the value of the easement one of the main schedules, use the Line 10 by $15,000 ($10,000/$100,000 × Continuation Schedule at the end of Enter the total value of the qualified $150,000) and report the value of the Form 706. It provides a uniform format conservation easements on which the easement on line 10 as $135,000. for listing additional assets from exclusion is based. This could include Schedules A through I and additional easements granted by the decedent (or Line 15 deductions from Schedules J, K, L, M, someone other than the decedent) prior and O. If a charitable contribution deduction for to the decedent’s death, easements granted by the decedent that take effect this land has been taken on Schedule Please remember to: at death, easements granted by the O, enter the amount of the deduction • Use a separate Continuation executor after the decedent’s death, or here. If the easement was granted after Schedule for each main schedule you some combination of these. the decedent’s death, a contribution are continuing. Do not combine assets deduction may be taken on Schedule Use the value of the easement or deductions from different schedules O, if it otherwise qualifies, as long as no as of the date of death, even if on one Continuation Schedule. income tax deduction was or will be the easement was granted prior CAUTION ! claimed for the contribution by any • Make copies of the blank schedule to the date of death. But, if the value of person or entity. before completing it if you expect to the easement was different at the time need more than one. the easement was contributed than at Line 16 • Use as many Continuation the date of death, see the Caution at Schedules as needed to list all the the beginning of the Schedule U You must reduce the value of the land assets or deductions. Instructions. by the amount of any acquisition • Enter the letter of the schedule you indebtedness on the land at the date of Explain how this value was are continuing in the space at the top of the decedent’s death. Acquisition determined and attach copies of any the Continuation Schedule. indebtedness includes the unpaid appraisals. Normally, the appropriate amount of: way to value a conservation easement • Use the Unit value column only if is to determine the FMV of the land continuing Schedule B, E, or G. For all • Any indebtedness incurred by the both before and after the granting of the other schedules, use this space to donor in acquiring the property; easement, with the difference being the continue the description. • Any indebtedness incurred before the value of the easement. • Carry the total from the Continuation acquisition if the indebtedness would Schedules forward to the appropriate not have been incurred but for the You must reduce the reported value line on the main schedule. acquisition; of the easement by the amount of any If continuing Report Where on Continuation Schedule Schedule E, Pt. 2 Percentage includible Alternate valuation date Schedule K Amount unpaid to date Alternate valuation date Schedule K Amount in contest Alternate value Schedules J, L, M Description of deduction continuation Alternate valuation date and Alternate value Schedule O Character of institution Alternate valuation date and Alternate value Schedule O Amount of each deduction Amount deductible -40- Instructions for Schedules