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as of the date of the contribution of the easement, not the estate tax value. If the date of contribution and the estate tax values are the same, you do not need to do a separate computation. After completing the worksheet, enter the amount from line 14 of the worksheet on line 14 of Schedule U. Finish completing Schedule U by entering amounts on lines 4, 7, and 15 through 20, following the instructions later for those lines. At the top of Schedule U, enter "worksheet attached." Attach the worksheet to the return. Under section 2031(c), you may elect to exclude a portion of the value of land that is subject to a qualified conservation easement. You make the election by filing Schedule U with all of the required information and excluding the applicable value of the land that is subject to the easement on Part 5—Recapitulation, on item 12. To elect the exclusion, include on Schedule A, B, E, F, G, or H, as appropriate, the decedent's interest in the land that is subject to the exclusion. You must make the election on a timely filed Form 706, including extensions. The exclusion is the lesser of: • The applicable percentage of the value of land (after certain reductions) subject to a qualified conservation easement, or • $500,000. Once made, the election is irrevocable. General Requirements Qualified Land Land may qualify for the exclusion if all of the following requirements are met. • The decedent or a member of the decedent's family must have owned the land for the 3-year period ending on the date of the decedent's death. • No later than the date the election is made, a qualified conservation easement on the land has been made by the decedent, a member of the decedent's family, the executor of the decedent's estate, or the trustee of a trust that holds the land. • The land is located in the United States or one of its possessions. Member of Family Members of the decedent's family include the decedent's spouse; ancestors; lineal descendants of the decedent, of the decedent's spouse, and of the parents of the decedent; and the spouse of any lineal descendant. A legally adopted child of an individual is considered a child of the individual by blood. Indirect Ownership of Land The qualified conservation easement exclusion applies if the land is owned indirectly through a partnership, corporation, or trust, if the decedent owned (directly or indirectly) at least 30% of the entity. For the rules on determining ownership of an entity, see Ownership rules next. Ownership rules. An interest in property owned, directly or indirectly, by or for a corporation, partnership, or trust is considered proportionately owned by or for the entity's shareholders, partners, or beneficiaries. A person is the beneficiary of a trust only if the person has a present interest in the trust. For additional information, see the ownership rules in section 2057(e)(3). Qualified Conservation Easement A qualified conservation easement is one that would qualify as a qualified conservation contribution under section 170(h). It must be a contribution: • Of a qualified real property interest, • To a qualified organization, and • Exclusively for conservation purposes. Qualified real property interest. A qualified real property interest is any of the following. • The entire interest of the donor, other than a qualified mineral interest. • A remainder interest. • A restriction granted in perpetuity on the use that may be made of the real property. The restriction must include a prohibition on more than a de minimis use for commercial recreational activity. Qualified organization. A qualified organization includes the following. • Corporations and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals, without net earnings benefitting any individual shareholder and without activity with the purpose of influencing legislation or political campaigning, which: a. Receives more than one-third of its support from gifts, contributions, membership fees, or receipts from sales, admissions fees, or performance of services; or b. Is controlled by such an organization. • Any entity that qualifies under section 170(b)(1)(A)(v) or (vi). Conservation purpose. An easement has a conservation purpose if it is for: • The preservation of land areas for outdoor recreation by, or for the education of, the public; • The protection of a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem; or • The preservation of open space (including farmland and forest land) where such preservation is for the scenic enjoyment of the general public, or under a clearly delineated federal, state, or local conservation policy and will yield a significant public benefit. Specific Instructions Line 1 If the land is reported as one or more item numbers on a Form 706 schedule, simply list the schedule and item numbers. If the land subject to the easement is only part of an item, however, list the schedule and item number and describe the part subject to the easement. See the instructions for Schedule A—Real Estate, earlier, for information on how to describe the land. Instructions for Form 706 (Rev. 09-2022) -51-