Internal Revenue Code:Sec. 2703. Certain rights and restrictions disregarded

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 14 - SPECIAL VALUATION RULES
     

Statute

    Sec. 2703. Certain rights and restrictions disregarded
 
    (a) General rule
      For purposes of this subtitle, the value of any property shall be
    determined without regard to -
        (1) 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
        (2) any restriction on the right to sell or use such property.
    (b) Exceptions
      Subsection (a) shall not apply to any option, agreement, right,
    or restriction which meets each of the following requirements:
        (1) It is a bona fide business arrangement.
        (2) 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.
        (3) Its terms are comparable to similar arrangements entered
      into by persons in an arms' length transaction.
 

Sources

    (Added Pub. L. 101-508, title XI, Sec. 11602(a), Nov. 5, 1990, 104
    Stat. 1388-498.)
 

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