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decedent was personally liable for that mortgage, you must report the full value of the property in the value column. Enter the amount of the mortgage under “Description” on this schedule. The unpaid amount of the mortgage may be deducted on Schedule K. 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) in the value column as part of the gross estate. Do not enter any amount less than zero. Do not deduct the amount of indebtedness on Schedule K. Also list on Schedule A real property the decedent contracted to purchase. Report the full value of the property and not the equity in the value column. Deduct the unpaid part of the purchase price on Schedule K. 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. Schedule A-1—Section 2032A Valuation The election to value certain farm and closely held business property at its special-use value is made by checking “Yes” on Form 706, Part 3—Elections by the Executor, line 2. Schedule A-1 is used to report the additional information that must be submitted to support this election. In order to make a valid election, you must complete Schedule A-1 and attach all of the required statements and appraisals. For definitions and additional information concerning special-use valuation, see section 2032A and the related regulations. Part 1. Type of Election Estate and GST tax elections. If you elect special-use valuation for the estate tax, you must also elect special-use valuation for the GST tax and vice versa. Protective election. To make the protective election described in the separate instructions for Part 3—Elections by the Executor, line 2, you must complete the following. • Check the box in Part 1. Type of Election. • Enter the decedent's name and SSN in the spaces provided at the top of Schedule A-1. • Complete Part 2. Notice of Election, line 1, and column A for lines 3 and 4. For purposes of the protective election, list on line 3 all of the real property that passes to the qualified heirs even though some of the property will be shown on line 2 when the additional notice of election is subsequently filed. You don’t need to complete columns B through D of lines 3 and 4 or any other line entries on Schedule A-1. Completing Schedule A-1 as described above constitutes a Notice of Protective Election as described in Regulations section 20.2032A-8(b). Part 2. Notice of Election Line 10. Because the special-use valuation election creates a potential tax liability for the recapture tax of section 2032A(c), you must list each person who receives an interest in the specially valued property on Schedule A-1. If there are more than eight persons who receive interests, use an additional Schedule A—Example 1 In this example, alternate valuation is not adopted; the date of death is January 1, 2021. Item number Description Alternate valuation date Alternate value Value at date of death 1 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $550,000 Rent due on item 1 for quarter ending November 1, 2020, but not collected at date of death . . . 8,100 Rent accrued on item 1 for November and December 2020 . . . . . . . . . . . . . . . . . . . . . . 5,400 2 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 . . . . . . . . . . . . . . . . . . . . . 375,000 Rent due on item 2 for December 2020, but not collected at death . . . . . . . . . . . . . . . . . . 1,800 Schedule A—Example 2 In this example, alternate valuation is adopted; the date of death is January 1, 2021. Item number Description Alternate valuation date Alternate value Value at date of death 1 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 . . . . . . . . . . . . . 7/1/21 $535,000 $550,000 Rent due on item 1 for quarter ending November 1, 2020, but not collected until February 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/1/21 8,100 8,100 Rent accrued on item 1 for November and December 2020, collected on February 1, 2021 . . . 2/1/21 5,400 5,400 2 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, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5/1/21 369,000 375,000 Rent due on item 2 for December 2020, but not collected until February 1, 2021 . . . . . . . . . . 2/1/21 1,800 1,800 -20- Instructions for Form 706 (Rev. 09-2021)