706 Sch. K

Debts, Mortgages, and Liens

Agency
IRS
Revision
August 2025
Fillable fields
132
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 706 Sch. K online
Page 1 of form 706 Sch. K

Schedule K (Form 706): Debts, Mortgages, and Liens

Schedule K (Form 706) reports deductions claimed for debts of the decedent and for mortgages and liens, the IRS About Form 706 page says. It is attached to Form 706, the estate tax return the executor of a decedent's estate uses to figure the estate tax. The Instructions for Form 706 say Schedule K is completed and attached if deductions are claimed on Form 706, Part V, item 15 or item 16.

Part I lists valid debts the decedent owed at the time of death. Part II lists obligations secured by mortgages or other liens on property included in the gross estate. Each part has its own total, which is carried to Form 706, Part V. Two yes or no questions at the top ask about reimbursements and about items deductible under Reg. section 20.2053-4(b) and (c).

You can fill out Schedule K (Form 706) free in your browser on this page and download it without an account.

What's on Schedule K (Form 706)

Decedent information

The decedent's name as it appears on Form 706 and the decedent's Social Security number.

Questions 1 and 2

Yes or no questions on any actual or potential reimbursement to the estate for a claimed debt, mortgage or lien, and on items deductible under Reg. section 20.2053-4(b) and (c).

Part I: Debts of the Decedent

Line 3 is a table with item number, a description of the creditor, nature of debt and allowable death taxes, and the amount.

Lines 4 to 6: debt totals

Line 4 adds column (iii), line 5 holds totals from attached Schedule W (Form 706) or statements, and line 6 is the total carried to Form 706, Part V, item 15.

Part II: Mortgages and Liens

Line 7 is a table for mortgages and liens on, or in respect of, any property of the decedent, with the same three columns.

Lines 8 to 10: mortgage totals

Line 8 adds column (iii), line 9 holds totals from attached Schedule W or statements, and line 10 is the total carried to Form 706, Part V, item 16.

How to fill out Schedule K (Form 706)

  1. 1

    Answer questions 1 and 2

    If either answer is Yes, the schedule says to attach Schedule W (Form 706) or additional statements describing the items subject to reimbursement, or giving the provision and documenting the claim's value.

  2. 2

    Part I debts

    The instructions say to list only valid debts the decedent owed at death. A disputed debt is deducted only for the amount the estate concedes to be a valid claim.

  3. 3

    Describe each debt

    Give the creditor and the exact nature of the claim, and the period covered for services. For unsecured notes, the instructions ask for the payee, face and unpaid balance, date and term, interest rate and the date interest was paid to.

  4. 4

    Taxes as debts

    The instructions say property taxes are limited to those accrued before death. Federal taxes on income received during the decedent's lifetime are deductible, and taxes on income received after death are not.

  5. 5

    Part II mortgages and liens

    In column (ii), give the schedule, line and item number where the property is reported, the mortgagee's name and address, the date and term, the face amount, unpaid balance, interest rate and the date interest was paid to.

  6. 6

    Add the totals

    Add column (iii) on lines 4 and 8, add any Schedule W totals on lines 5 and 9, then carry line 6 to Form 706, Part V, item 15 and line 10 to item 16.

Why fill Form 706 Sch. K on indox

You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.

  • Fill the form right in your browser, no software to install
  • Free to fill and free to download, with no account
  • The official blank straight from the IRS, not a copy someone retyped
  • Works on a phone, tablet or computer

Where it goes and timing

Attach to Form 706

The schedule says "Attach to Form 706." Its totals are entered on Form 706, Part V, items 15 and 16.

Form 706 due date

The Form 706 instructions say Form 706 is filed within 9 months after the date of the decedent's death, and Form 4768 is used to apply for an automatic 6-month extension of time to file.

Where Form 706 is filed

The Form 706 instructions give Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999. The About page points to Filing estate and gift tax returns for the latest address.

Keep records

The instructions say to keep all vouchers or original records for inspection by the IRS.

More space

The schedule says to attach Schedule W (Form 706) or additional statements if more space is needed.

Related forms

Who completes Schedule K (Form 706)?

  • Executors of an estate

    The About Form 706 page says the executor of a decedent's estate uses Form 706. The instructions say executor includes the executor, personal representative or administrator.

  • Estates claiming items 15 or 16

    The instructions tie Schedule K to deductions claimed on Form 706, Part V, item 15 (debts of the decedent) or item 16 (mortgages and liens).

  • Estates with mortgaged property

    If the estate is liable for a mortgage on real estate, the instructions say the full value goes on Schedule A and the unpaid mortgage may be deducted on Schedule K.

  • Estates making a protective claim

    For an expense not currently deductible, the schedule says to use Schedule PC (Form 706) and report the expense on Schedule K without a value in the amount column.

  • Notes payable go here, not Schedule C

    Mortgages and notes payable by the decedent are not listed on Schedule C (Form 706). The instructions say deductible ones are listed on Schedule K instead.

The schedule is completed for a decedent's estate as part of Form 706 and goes to the IRS with that return. It is not an individual income tax form.

Official sources and the blank

Do it all with indox

View all 123 tools

Questions about Form 706 Sch. K

What is Schedule K (Form 706) for?

The About Form 706 page says it is used to report deductions claimed for debts of the decedent and mortgages and liens.

When is Schedule K attached?

The instructions say it is completed and attached if deductions are claimed on Form 706, Part V, item 15 or item 16.

What if a debt is disputed?

The instructions say that if the amount is disputed or the subject of litigation, only the amount the estate concedes to be a valid claim is deducted.

Can a debt be deducted on both the estate and income tax returns?

The instructions say taxes, interest and business expenses accrued at the date of death are deductible both on Schedule K and as deductions in respect of the decedent on the estate's income tax return.

When is a mortgage not deducted?

The instructions say that if the estate is not liable, only the equity of redemption is included in the gross estate and no part of the debt is deducted on this schedule.

Are claims of a former spouse deductible?

The instructions say certain claims based on the relinquishment of marital rights are deductible on Schedule K when the conditions they list, such as a written agreement and a divorce within the stated period, are met.