Updated October 18, 2026. Quick answer: Schedule E lists property the decedent held with someone else as joint tenants with right of survivorship or as tenants by the entirety. Part I is for qualified joint interests between spouses, and Part II is for everything else. The value comes from the property records, and the form asks for the percentage of each item included in the gross estate.
IRS estate-administration forms, read line by line: Form 706-NA Part III and Form 706-NA Part V.
What goes on Schedule E
“If you are required to file Form 706, complete Schedule E (Form 706) and file it with the return if the decedent owned any joint property at the time of death, whether or not the decedent’s interest is includible in the gross estate.” The scope is “property of whatever kind or character, whether real estate, personal property, or bank accounts” held “as a joint tenant with right to survivorship or as a tenant by the entirety.”
Every schedule opens with the same caution. “If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns.” It then points the reader to the instructions for Part V, item 10, which explain how to estimate and report the value of those assets.
What does not go on Schedule E
“Do not list on this schedule property that the decedent held as a tenant in common, but report the value of the interest on Schedule A (Form 706) if real estate, or on the appropriate schedule if personal property.” See the Schedule A page for real estate.
Community property is also kept off this schedule: “community property held by the decedent and spouse should be reported on the appropriate Schedules A through I of Form 706.” Basis questions about community property are covered on the community property double step-up page.
For partnerships: “The decedent’s interest in a partnership should not be entered on this schedule unless the partnership interest itself is jointly owned.” “Solely owned partnership interests should be reported on Schedule F (Form 706).” See the Schedule F page.
Part I: qualified joint interests
“a joint interest is a qualified joint interest if the decedent and the surviving spouse held the interest as” “Tenants by the entirety, or” “Joint tenants with right of survivorship if the decedent and the decedent’s spouse are the only joint tenants.”
The values for Part I are “enter the full value of the property.” One exception applies to non-citizen spouses: “You cannot claim the special treatment under section 2040(b) for property held jointly by a decedent and a surviving spouse who is not a U.S. citizen.” Those interests go on Part II instead.
Part II: all other joint interests
“All joint interests that were not entered in Part I must be entered in Part II.” “For each item of property, enter the appropriate letter A, B, C, etc., from line 6a to indicate the name and address of the surviving cotenant.”
On the amount included: “Under column (v), Percentage includible, enter the percentage of the total value of the property included in the gross estate.” The general rule is “Generally, you must include the full value of the jointly owned property in the gross estate.” The instructions then give exceptions, such as when “a part of the property originally belonged to the other tenant(s)”, and add “you must establish the right to include the smaller value by attaching proof of the extent, origin, and nature of the decedent’s interest and the interest(s) of the decedent’s cotenant(s).”
For property received together by gift or inheritance, “include only that part of the value of the property that is figured by dividing the full value of the property by the number of joint tenants.” “enter only the values that you believe are includible in the gross estate.”
Where the number comes from
Describe each item using the schedule that fits its type. The instructions say “describe the property as required in the instructions for Schedules A, B, C, and F of Form 706”. The Part IV question on the form is the trigger: “you must complete and attach Schedule E (Form 706)”. The Schedule B and Schedule C pages cover the description rules for securities and accounts.
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Where it goes next
Each schedule feeds one item of Part V, the recapitulation, on the form. The form’s caption for this schedule reads “Total jointly owned property. Schedule E, line 10”. The Part V instructions list which schedules to attach: “Schedule E (Form 706), if the gross estate contains any jointly owned property or if you answered” The same instructions say “If the gross estate does not contain any assets of the type specified by a given item, enter zero for that item.” They add “Entering zero for any of items 1 through 9 is a statement by the executor, made under penalties of perjury, that the gross estate does not contain any includible assets covered by that item.”
For the alternate value column, the Part V instructions say not to enter amounts there “unless you elected alternate valuation on Part III, line 1.” That election is explained on the Part III elections page and the alternate valuation date page, and the recapitulation is covered on the Parts 4 and 5 page. The return itself is explained on the Form 706 page.
Edition and line numbers
This page reads the Form 706 revision dated August 2025 and the Instructions for Form 706 revision dated July 2026. They are the current files irs.gov served on 2026-10-18, byte-identical to the archived copies used here. The instructions state “For decedents dying after December 31, 2025.” The form itself says “To be filed for decedents dying after December 31, 2024.” Check the revision date printed on your Form 706 and the instruction edition for the year of death, and use the line numbers on that revision.
Common mistakes
- Listing tenancy in common property here. The instructions say “Do not list on this schedule property that the decedent held as a tenant in common”.
- Putting a non-citizen spouse’s joint property in Part I. The instruction is to “Report these joint interests on Part II of Schedule E (Form 706), not Part I.”
- Claiming less than the full value without proof. The instructions say “you must establish the right to include the smaller value”.
Related: Form 706, community property double step-up, and estate planning glossary.
Sources
- Instructions for Form 706 (Rev. July 2026): https://www.irs.gov/pub/irs-pdf/i706.pdf
- Form 706 (Rev. August 2025), United States Estate (and Generation-Skipping Transfer) Tax Return: https://www.irs.gov/pub/irs-pdf/f706.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.