Updated October 18, 2026. Quick answer: Part IV of Form 706-NA starts with the gross estate in the United States from Part V and ends with the taxable estate. In between, expenses are allocated by a ratio of the U.S. gross estate to the entire gross estate, and charitable, marital and state death tax deductions are added. The numbers come from Part V, foreign estate records, itemized expense schedules and Form 706 schedules.
What to enter and where it comes from: lines 1 to 3
The instructions summarize the flow: “The estate tax is imposed on the decedent’s gross estate in the United States, reduced by allowable deductions.” Line 1 is captioned “Gross estate in the United States. Part V, line 3”, so it is copied from Part V. Line 2 is “Gross estate outside the United States” and line 3 is “Entire gross estate wherever located. Add lines 1 and 2”.
For line 2 the instructions say “The amount on line 2 is the total value of the assets included in the entire gross estate that were located outside the United States.” To document it, “attach a certified copy of the foreign death tax return or, if none was filed, a certified copy of the estate inventory”. They add “Supplement these documents with attachments if they do not set forth the entire gross estate outside the United States.” On dates: “If you elected the alternate valuation date for property listed on Part V”, “use it also for the assets reported on line 2.” “Otherwise, value the amounts as of the date of death.”
Line 4: funeral and administration expenses
The line 4 caption begins “Amount of funeral expenses, administration expenses” and says “Attach itemized schedule(s)”. The instructions say “You may deduct the following items whether or not they were incurred or paid in the United States.” The list starts with “Funeral expenses.” and “Administration expenses.”
“On line 4, show the total of these deductible items.” “In general, the total is limited to the amount on line 3.” On documentation: “To document the line 4 amount, attach an itemized schedule.” “For each expense or claim, specify the nature and amount”. A related page on funeral costs and the estate covers the funeral side.
The Caution about lines 2 and 4
The form carries a Caution: “You must document lines 2 and 4 for the deduction on line 6 to be allowed.” The instructions repeat it: “you must complete lines 1 through 5 and document the amounts you include on lines 2 and 4.” If the line 2 or line 4 support is missing, the line 6 deduction is the item at risk.
Lines 5 and 6: the allocation by ratio
Two lines do the allocation. Line 5 says “Divide line 1 by line 3”, which is the U.S. gross estate divided by the entire gross estate. Line 6 is “Deduction for expenses, claims, etc. Multiply line 5 by line 4”. The line 6 result, not the full line 4 amount, is what carries into the total on line 9.
Lines 7 and 8: charitable, marital and state death tax deductions
Line 7 is captioned “Charitable deduction (attach Schedule O (Form 706))” and marital deduction. The instructions say “Unless a treaty allows otherwise, you may take a charitable deduction only if the transfer was to a domestic entity or for use in the United States”. For the marital deduction: “you may only take a marital deduction if the surviving spouse is a U.S. citizen or if the property passes to a qualified domestic trust (QDOT)”. Then “Attach Schedule M (Form 706) and a statement showing your computation of the marital deduction.” See the Schedule M page.
Line 8 is the “State death tax deduction”. “You may take a deduction on line 8 for death taxes (estate, inheritance, legacy, or succession taxes) you paid to any state or the District of Columbia on property listed in Part V.” “Generally, you must claim this deduction within 4 years of filing the return.” “For the deduction to be allowed, you must file a certificate signed by the appropriate official of the taxing state.” “If possible, attach the certificate to this return”.
Lines 9 and 10: totals
Line 9 is “Total deductions. Add lines 6, 7, and 8”. Line 10 is “Taxable estate. Subtract line 9 from line 1. Enter here and on Part II, line 1”.
Where it goes next
The line 10 result goes to Part II line 1, which the form captions “Taxable estate from Part IV, line 10”. The calculation continues on Part II lines 1 to 8 of the return. The whole form is described on the Form 706-NA page.
Edition and line numbers
This page reads the Form 706-NA revision dated August 2025 and the Instructions for Form 706-NA revision dated September 2025. Those are the current files irs.gov served on 2026-10-18. The form’s own caption reads “(Rev. August 2025)” and it states “To be filed for decedents dying after December 31, 2024.” Check the revision date printed on your own Form 706-NA and use that revision’s line numbers, because a different revision can number or word its lines differently.
Common mistakes
- Sending line 2 or line 4 without support. The form says “You must document lines 2 and 4 for the deduction on line 6 to be allowed.”
- Putting the line 4 total on line 9 instead of the line 6 result. Line 6 is “Multiply line 5 by line 4”, and line 9 adds lines 6, 7, and 8.
- Claiming the state death tax deduction with no certificate. The instructions say “For the deduction to be allowed, you must file a certificate signed by the appropriate official of the taxing state.”
Related: Form 706-NA, funeral costs and the estate, Form 706 Schedule M, Form 706 Schedule O, and estate tax by state.
Sources
- Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of Nonresident Not a Citizen of the United States (Rev. August 2025): https://www.irs.gov/pub/irs-pdf/f706na.pdf
- Instructions for Form 706-NA (Rev. September 2025): https://www.irs.gov/pub/irs-pdf/i706na.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.