26 U.S.C. § 2703 — Certain rights and restrictions disregarded
submitted 36 years ago by Pub. L. 101-508 to r/title-26-INTERNAL-REVENUE-CODE · 139 words · no verdicts yet
This section generally ignores specified rights and restrictions when valuing property for the subtitle. It preserves them when they are genuine, arm’s-length business arrangements meeting all listed conditions.
(a) General rule. For this subtitle, property value is determined without considering (1) an option, agreement, or other right to acquire or use it below its fair market value, or (2) a restriction on selling or using it. (b) Exceptions. The rule does not apply when the option, agreement, right, or restriction (1) is a genuine business arrangement, (2) is not a device to transfer property to the decedent's family for less than full and adequate money value, and (3) has terms comparable to similar arm's-length arrangements.
For purposes of this subtitle, the value of any property shall be determined without regard to—
any option, agreement, or other right to acquire or use the property at a price less than the fair market value of the property (without regard to such option, agreement, or right), or
any restriction on the right to sell or use such property.
Subsection (a) shall not apply to any option, agreement, right, or restriction which meets each of the following requirements:
It is a bona fide business arrangement.
It is not a device to transfer such property to members of the decedent’s family for less than full and adequate consideration in money or money’s worth.
Its terms are comparable to similar arrangements entered into by persons in an arms’ length transaction.
Source credit: (Added Pub. L. 101–508, title XI, § 11602(a), Nov. 5, 1990, 104 Stat. 1388–498.)
- 1990Enacted · Pub. L. 101-508 · 104 Stat. 1388
A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-508 on 1990-11-05.
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