M706Q P2
2014 Election to Claim the Qualified Small Business and Farm Property Deduction (continued)
Decedent’s first name, middle initial, last name
Decedent’s Social Security number
Executor’s first name, middle initial, last name
Executor’s Social Security number
Part 3 — Qualified Heirs and Family Members Requirements
11 Are each of the persons who acquired the qualified property from the decedent
family members (see instructions)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Yes
No
12 For the Small Business Property Deduction: Describe the trade or business the decedent and the qualified property was
engaged in and provide the NAICS Code.
Trade or business
NAICS Code
13 Do the persons from question 11, the qualified heirs, agree that a family member will maintain the 2a
classification for the farm property deduction or materially participate in the operation of the trade or
business described in question 12 for the small business property deduction for the three years
following the decedent’s death? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Yes
No
14 Do the persons from question 11, the qualified heirs, agree not to dispose of any interest in the qualified
property other than to a family member during the three years following the decedent’s death?. . . . . . . . . . . 14
Yes
No
Important: If, within three years following the decedent’s death, the qualified heir(s) do not adhere to the agreement signed on
page 3 of the M706, a recapture tax will be imposed.
15 Enter the name of each qualified heir from question 11, their relationship to the decedent, the Federal schedule and item
number where the properties are reported on Federal Form 706, and the fair market value of the properties received.
Federal Schedule and
Name
Relationship to Decedent
Fair Market Value Received
Item Number Where Reported