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Form 706-SL: 706 (Schedule L)
IRS Form 706 (Schedule L) is used to report Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims for the estate. The form requires reporting losses not reimbursed by insurance or otherwise.
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IRS Form 706-SL - 706 (Schedule L)
IRS Form 706 (Schedule L) is used to report Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims for the estate. The form requires reporting losses not reimbursed by insurance or otherwise.
Risk Radar
Scan points- 1Ensure you only deduct losses not reimbursed by insurance or otherwise in Part I.
- 2Failing to report losses from thefts, fires, or storms in Part I.
- 3Deducting losses that were already claimed on a federal income tax return.
- 4Listing expenses in Part II that were paid after the section 6501 period expired.
- 5Not indicating if an expense is estimated, agreed upon, or paid in Part II.
Plain English
This form helps document financial setbacks and administrative costs associated with managing an estate. It reports losses that happen while settling the estate, as well as expenses paid for property that isn't tied up in a specific claim. This information is attached to Form 706.
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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Glossary Terms
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What this form is for
- Use this form when reporting Net Losses During Administration or Expenses Incurred in Administering Property Not Subject to Claims for an estate.
- Do not use this form if losses were claimed on a federal income tax return, unless they are being reported via Schedule L (Form 706) itself.
- Check Schedule PC (Form 706) instead when making a protective claim for refund due to an expense not currently deductible.
Form selector
Use this form or another form?
Claiming expenses paid after the section 6501 period expired
Expenses must be reported in Part II, line 5, and added up to total expenses on line 8.
✓ Check Part V, item 20 of Form 706.
Reporting a loss from theft during administration
The loss must have occurred during the settlement of the estate and not been reimbursed by insurance.
✓ Check Part I, line 1 of Form 706.
Needing more space for reporting losses or expenses
Attach these documents to provide extra detail beyond the main schedule fields.
✓ Ensure attached schedules reference this form correctly.
Schedule(s) W (Form 706) or additional statements
Deadline or filing window
The expenses listed on Schedule L (Form 706) must be paid before the section 6501 period of limitations for assessment expired. The form itself does not state a specific filing deadline, but it attaches to Form 706.
Checklist
What you need before filling it out
Net Losses During Administration
Item number (i) and Net losses amount (ii) · Part I, Lines 1-4
Expenses Not Subject to Claims
Indicate status (estimated, agreed upon, or paid) in column (ii) · Part II, Lines 5-8
Protective Claim Expense
Use Schedule PC (Form 706) · Instructions for Form 706
Losses from Casualty Events
Must be from thefts, fires, storms, shipwrecks, or other casualties during settlement · Part I, Line 1
Before you submit
- 1Ensure Decedent’s name and SSN are correctly listed at the top of Schedule L (Form 706).
- 2Verify that all reported losses in Part I were not reimbursed by insurance or otherwise.
- 3Confirm expenses entered in Part II were paid before the section 6501 period for assessment expired.
- 4Add up all amounts on line 2 (Total net losses during administration) and enter it on Form 706, Part V, item 19.
- 5Add up all amounts on line 6 (Total expenses incurred in administering property not subject to claims) and enter it on Form 706, Part V, item 20.
- 6If attaching supporting documents, ensure they are labeled as Schedule(s) W (Form 706) or additional statements.
- 7Review the document to confirm it is the August 2025 edition.
How to file this form
- 1Complete Part I by entering net losses during administration on lines 1 through 4, ensuring total losses are added on line 4.
- 2Complete Part II by entering expenses incurred in administering property not subject to claims on lines 5 through 8, noting if the expense is estimated, agreed upon, or paid.
- 3Attach Schedule(s) W (Form 706) or additional statements if more space is needed for losses or expenses.
- 4Enter the total net losses from Part I onto Form 706, Part V, item 19 and the total expenses from Part II onto Form 706, Part V, item 20. Keep a copy of this completed Schedule L (Form 706).
Known limitations
- 1Only losses from thefts, fires, storms, shipwrecks, or other casualties that occurred during the settlement of the estate may be deducted.
- 2When reporting net losses during administration on Schedule L (Form 706), amounts already claimed on a federal income tax return should not be deducted again in Part I.
- 3Expenses reported in Part II must have been paid before the section 6501 period of limitations for assessment expired to be deductible.
- 4If more space is needed, Schedule(s) W (Form 706) or additional statements must be attached to this schedule.
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.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is dated 08/25 (August 2025), and the instructions direct users to www.irs.gov/Form706 for the latest information.
What changed or needs a fresh check
- Edition date — confirm the revision date reads 8/25.
- OMB Number — confirm the number is 1545-0015.
- Part I Total Loss Line — confirm line 4 totals lines 2 and 3.
- Part II Total Expense Line — confirm line 8 totals lines 6 and 7.
Quick Facts
Downloads
After you file
- 1The filer should attach the completed Schedule L (Form 706) to Form 706.
- 2A copy of the filed Schedule L (Form 706) must be retained by the filer.
- 3For expenses reported in Part II, the filer must indicate whether those expenses were estimated, agreed upon, or paid.
- 4The total net losses during administration from Schedule(s) W (Form 706) must be entered on Form 706, Part V, item 19.
- 5The total expenses incurred in administering property not subject to claims from Schedule(s) W (Form 706) must be entered on Form 706, Part V, item 20.
Sources
- SRCSchedule L (Form 706) is used to report Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims.
- SRCFor expenses not currently deductible, the filer reports them on Schedule L (Form 706) without a value in the last column [Instructions p.2].
- SRCNet losses during administration must only be from thefts, fires, storms, shipwrecks, or other casualties that occurred during estate settlement [Form p.1].
- SRCPart I requires adding line 2 (net losses) and line 3 (losses from attached schedules) to find the Total net losses during administration [Form p.1].
- SRCExpenses in Part II are only deductible if paid before the section 6501 period of limitations for assessment expired [Form p.2].
- SRCThe total expenses incurred in administering property not subject to claims (Part II) is found by adding line 6 and line 7 [Form p.2].
Common confusion points
What do I report if an expense isn't currently deductible?
The filer should report the expense on Schedule L (Form 706) but without a value in the last column.
How do I calculate my total net losses during administration?
Total net losses are found by adding line 2 and line 3 from Part I of Schedule L (Form 706).
What is the difference between Part I and Part II reporting?
Part I reports 'Net Losses During Administration,' while Part II reports 'Expenses Incurred in Administering Property Not Subject to Claims.'
Where do the totals from Schedule L (Form 706) go on Form 706?
Workflow map
Related forms and next steps
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⚠ If something goes wrong
- Go to www.irs.gov/Form706 for instructions and the latest information regarding IRS Form 706.
Questions about IRS Form 706-SL
What is IRS Form 706-SL used for?
This form helps document financial setbacks and administrative costs associated with managing an estate. It reports losses that happen while settling the estate, as well as expenses paid for property that isn't tied up in a specific claim. This information is attached to Form 706.
Who must file IRS Form 706-SL?
The filer must be someone administering the estate, as indicated by the need to report net losses and administrative expenses.
What information does IRS Form 706-SL require?
Part I details Net Losses During Administration (lines 1-4), while Part II lists Expenses Incurred in Administering Property Not Subject to Claims (lines 5-8). The form requires Decedent’s name and social security number for identification.
When is IRS Form 706-SL due?
The expenses reported in Part II must have been paid before the section 6501 period of limitations for assessment expired. There is no specific filing deadline mentioned on this schedule itself.
Where do I file IRS Form 706-SL?
The instructions direct users to www.irs.gov/Form706 for further information, but a specific service center address is not provided in these excerpts.
How do I complete IRS Form 706-SL?
First, identify the Decedent and enter their SSN. Next, complete Part I by listing losses from thefts, fires, etc., on lines 1-4. Then, fill out Part II with expenses paid before the section 6501 period expiration, completing lines 5-8.
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