Sch U Qualified Conservation Easement Exclusion

TREASURY/IRS AND OMB USE ONLY DRAFT
SCHEDULE U
(Form 706)

Qualified Conservation Easement Exclusion

(August 2025)
Department of the Treasury
Internal Revenue Service

Attach to Form 706.
Go to www.irs.gov/Form706 for instructions and the latest information.

OMB No. 1545-0015

Decedent’s social security number

Decedent’s name as it appears on Form 706

Part I

Version A, Cycle 3

Election

The executor is deemed to have made the election under section 2031(c)(6) if the executor files Schedule U (Form 706) and excludes any
qualifying conservation easements from the gross estate.

Part II

Describe the land subject to the qualified conservation easement. See instructions.

2

Did the decedent or a member of the decedent’s family own the land described above during the 3-year period
ending on the date of the decedent’s death? . . . . . . . . . . . . . . . . . . . . . .
Describe the conservation easement with regard to which the exclusion is being claimed. See instructions.

3

Part III

Estate tax value of the land subject to the qualified conservation easement. See instructions

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6
7

Date of death value of any easements granted prior to decedent’s death
and included on line 10 below. See instructions . . . . . . .
Add lines 4 and 5
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Value of retained development rights on the land. See instructions .

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7

8

Subtract line 7 from line 6 .

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11

12

No

Computation of Exclusion

4

10

Yes

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8

Multiply line 8 by 30% (0.30) .

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9

Value of qualified conservation easement for which the exclusion is
being claimed. See instructions . . . . . . . . . . . .
Note: If line 10 is less than line 9, continue with line 11. If line 10 is
equal to or more than line 9, skip lines 11 through 13, enter “0.40” on
line 14, and complete the schedule.

4

10

Divide line 10 by line 8. Figure to 3 decimal places (for example,
“0.123”) . . . . . . . . . . . . . . . . . . .
Note: If line 11 is equal to or less than 0.100, stop here. The estate
does not qualify for the conservation easement exclusion.

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13

Subtract line 11 from 0.300.
rounding any thousandths up
0.030 = 0.03, but 0.031 = 0.04)
Multiply line 12 by 2.0 . . .

14

Subtract line 13 from 0.40 .

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16
17

Deduction under section 2055(f) for the conservation easement.
instructions . . . . . . . . . . . . . . . . .
Amount of indebtedness on the land. See instructions . . . .
Total reductions in value. Add lines 7, 15, and 16
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See
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18

Net value of land. Subtract line 17 from line 4 .

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18

19

Multiply line 18 by line 14 .

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19

20

Enter the smaller of line 19 or the exclusion limitation. See instructions. Also enter this amount on
Form 706, Part V, item 12 . . . . . . . . . . . . . . . . . . . . . . . .

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Enter
to the
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the answer in hundredths by
next higher hundredth (that is,
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For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 706.

Cat. No. 94779E

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Schedule U (Form 706) (8-2025) Created 4/17/25

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

General Qualifications

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