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Official form guide
Form 706-SL: 706 (Schedule L)
Internal Revenue Service Form 706 Schedule L is used to report net losses incurred during estate administration and expenses for administering property not subject to claims; only unreimbursed losses may be deducted.
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IRS Form 706-SL - 706 (Schedule L)
Internal Revenue Service Form 706 Schedule L is used to report net losses incurred during estate administration and expenses for administering property not subject to claims; only unreimbursed losses may be deducted.
Risk Radar
Scan points- 1Deducting losses that were reimbursed by insurance.
- 2Omitting net losses in Part I line 1, leaving the loss amount blank.
- 3Including insurance‑reimbursed amounts in the net loss calculation, which are not allowed.
- 4Leaving column (iii) blank for an expense that has a dollar amount, resulting in zero reported.
- 5Failing to add the amounts in column (iii) on line 2, so the subtotal is incorrect.
Plain English
Schedule L tells the IRS how much money an estate lost while being settled and what costs were paid to manage property that no one can claim. You list the losses and the admin expenses, then copy the totals onto the main estate tax return.
Submission Date
- Filing date: 2025-08-27 22:10:21
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when reporting net losses incurred during estate administration and expenses for administering property not subject to claims.
- Do not use it when the losses have already been deducted on a federal income tax return or when expenses were paid after the Section 6501 limitation period.
- Check Schedule PC (Form 706) instead when making a protective claim for a nondeductible expense.
Form selector
Use this form or another form?
Reporting a protective claim for a nondeductible expense
The expense is not currently deductible, requiring a refund claim
✓ Verify the expense is not deductible on Schedule L
Needing additional space to list many losses or expenses
Additional statements are attached to Schedule L to capture all items
✓ Confirm attachment of Schedule W(s)
Filing the overall estate tax return
Schedule L is attached to the main estate tax return to report losses and expenses
✓ Ensure Form 706, Part V items 19 and 20 receive the totals
Deadline or filing window
Not stated in the official source.
Checklist
What you need before filling it out
Net losses during administration (Part I, line 1)
Documentation of loss amounts (e.g., insurance reports, settlement statements) · Listed on Schedule L line 1
Total net losses (Part I, line 4)
Sum of lines 2 and 3 · Schedule L calculation section
Expenses incurred in administering property not subject to claims (Part II, line 5)
Receipts or invoices for admin expenses · Schedule L line 5
Total expenses (Part II, line 8)
Sum of lines 6 and 7 · Schedule L calculation
Protective claim for nondeductible expense
Schedule PC (Form 706) with expense listed but no amount · Schedule PC attached to Form 706
Before you submit
- 1Enter each net loss amount in column (iii) on line 1 of Part I.
- 2Add all amounts in column (iii) and record the sum on line 2.
- 3Attach any Schedule W(s) showing additional net losses and record their total on line 3.
- 4Calculate total net losses by adding lines 2 and 3, and enter the result on line 4.
- 5Enter each expense for administering property not subject to claims in column (iii) on line 5 of Part II.
- 6Add all expense amounts and place the sum on line 6.
- 7Attach any Schedule W(s) with extra expenses, total them on line 7, then add lines 6 and 7 and enter the final amount on line 8, transferring it to Form 706 Part V item 20.
How to file this form
- 1Complete all required entries on Schedule L (Form 706) for net losses and admin expenses.
- 2Attach any Schedule W (Form 706) or additional statements that provide extra loss or expense details.
- 3Transfer the total net loss amount from line 4 to Form 706, Part V, item 19.
- 4Transfer the total expense amount from line 8 to Form 706, Part V, item 20.
- 5Sign and date Schedule L (if a signature line is present) and the accompanying Form 706.
- 6Mail the assembled Form 706 package, including Schedule L and attachments, to the IRS and retain the mailing receipt as proof of filing.
Known limitations
- 1Does not apply to losses that have already been deducted on a federal income tax return.
- 2Excludes losses that were reimbursed by insurance or other sources.
- 3Expenses must be for property not subject to claims; costs related to claimed property are excluded.
- 4Expenses incurred after the Section 6501 limitation period cannot be deducted.
Field map
Compact field-by-field guide
Decedent Info
2 items
Full legal name and date of death of the deceased individual.
Employer Identification Number assigned to the estate.
Executor
1 items
Name, address, and contact information of the appointed executor.
Assets
1 items
Total value of all assets owned by the decedent at time of death.
Deductions
1 items
Funeral expenses, debts, administrative costs, and charitable bequests.
Tax
1 items
Tax calculated on taxable estate exceeding the applicable exemption amount.
Signatures
1 items
The appointed executor must sign under penalty of perjury.
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Fillable formOpen in Editor->The form is the August 2025 edition (Schedule L (Form 706)). The top of the form directs users to www.irs.gov/Form706 for the latest information; the source does not specify any changes from prior editions.
What changed or needs a fresh check
- Edition date — confirm the form shows August 2025 (Form p.1).
- Fee — Not stated in the official source — verify on the agency site.
- Mailing address — Not stated in the official source — verify on the agency site.
- Signature — Not stated in the official source — verify on the agency site.
Quick Facts
Downloads
After you file
- 1Keep a complete copy of the filed Schedule L and all attached Schedule W(s) for your records.
- 2Store supporting loss and expense documentation for at least three years in case of audit.
- 3Monitor mail for any IRS notice referencing Form 706, Part V items 19 or 20.
- 4If an error is discovered, prepare and file an amended Schedule L with corrected totals.
- 5Confirm that the transferred amounts appear correctly on the final Form 706 filing.
Sources
- SRCForm p.1 — title shows August 2025 edition.
- SRCForm p.1 — directs to www.irs.gov/Form706 for latest information.
- SRCForm p.1 — instructs to use Schedule PC (Form 706) for protective claim and to report expense on Schedule L without a value.
- SRCForm p.1 — line 1 entry: 'Enter net losses during administration.'
- SRCForm p.1 — note: 'Do not deduct losses claimed on a federal income tax return.'
- SRCForm p.1 — losses must be unreimbursed by insurance.
- SRCForm p.2 — line 5 entry: 'Enter expenses incurred in administering property not subject to claims.'
- SRCForm p.2 — condition: expenses must be paid before the Section 6501 period of limitations for assessment expired.
- SRCForm p.2 — attach Schedule W (Form 706) for additional statements.
- SRCForm p.2 — totals from lines 4 and 8 must be entered on Form 706, Part V, items 19 and 20.
Common confusion points
Can I put a dollar amount in the last column for a protective claim?
Schedule PC is required; Schedule L should leave the amount blank for such expenses.
→ Verify that the last column on Schedule L is left blank and Schedule PC is attached.
Do I need to include losses already claimed on my personal tax return?
The form states not to deduct losses claimed on a federal income tax return.
→ Confirm none of the listed losses were deducted on a personal return.
Are reimbursed losses deductible?
Only amounts not reimbursed by insurance or otherwise are deductible.
→ Check insurance statements to ensure losses are unreimbursed.
Can I report expenses paid after the Section 6501 period?
Only expenses paid before the limitation period may be deducted.
→ Verify payment dates are before the Section 6501 deadline.
Do I need to attach Schedule W even if I have no additional losses?
Schedule W is only needed for extra space.
→ Attach Schedule W only when required for additional items.
Where do I enter the totals on the main Form 706?
The totals from Schedule L go to Part V, items 19 and 20.
→ Ensure the amounts from lines 4 and 8 are entered on Form 706, Part V, items 19 and 20.
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Questions about IRS Form 706-SL
What is IRS Form 706-SL used for?
Schedule L tells the IRS how much money an estate lost while being settled and what costs were paid to manage property that no one can claim. You list the losses and the admin expenses, then copy the totals onto the main estate tax return.
What information does IRS Form 706-SL require?
Part I records net losses during administration; Part II records expenses incurred in administering property not subject to claims, with amounts shown in column (iii).
How do I complete IRS Form 706-SL?
Enter net losses in Part I line 1 and sum them on line 2, adding any additional losses from attached Schedule W on line 3; the total appears on line 4 and is transferred to Form 706 Part V, item 19. Then enter admin expenses in Part II line 5, sum on line 6, add any attached Schedule W amounts on line 7, total on line 8 and transfer to Form 706 Part V, item 20.
Can I put a dollar amount in the last column for a protective claim?
Schedule PC is required; Schedule L should leave the amount blank for such expenses. Verify that the last column on Schedule L is left blank and Schedule PC is attached.
Do I need to include losses already claimed on my personal tax return?
The form states not to deduct losses claimed on a federal income tax return. Confirm none of the listed losses were deducted on a personal return.
Are reimbursed losses deductible?
Only amounts not reimbursed by insurance or otherwise are deductible. Check insurance statements to ensure losses are unreimbursed.
Can I report expenses paid after the Section 6501 period?
Only expenses paid before the limitation period may be deducted. Verify payment dates are before the Section 6501 deadline.
Do I need to attach Schedule W even if I have no additional losses?
Schedule W is only needed for extra space. Attach Schedule W only when required for additional items.
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