2012 US Code
Title 26 - Internal Revenue Code
Subtitle B - Estate and Gift Taxes (§§ 2001 - 2801)
Chapter 14 - SPECIAL VALUATION RULES (§§ 2701 - 2704)
Section 2703 - Certain rights and restrictions disregarded

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Publication TitleUnited States Code, 2012 Edition, Title 26 - INTERNAL REVENUE CODE
CategoryBills and Statutes
CollectionUnited States Code
SuDoc Class NumberY 1.2/5:
Contained WithinTitle 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
Sec. 2703 - Certain rights and restrictions disregarded
Containssection 2703
Laws in Effect as of DateJanuary 15, 2013
Positive LawNo
Source CreditAdded Pub. L. 101-508, title XI, §11602(a), Nov. 5, 1990, 104 Stat. 1388-498.
Statutes at Large Reference104 Stat. 1388-498
Public Law ReferencePublic Law 101-508

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SPECIAL VALUATION RULES - 26 U.S.C. § 2703 (2012)
§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.

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

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