(2)For purposes of this subsection, an interest purchased by one member of a family from another shall be considered to be created by gift from the seller, and the fair market value of the purchased interest shall be considered to be donated capital. The “family” of any individual shall include only his spouse, ancestors, and lineal descendants, and any trusts for the primary benefit of such persons. (f)For rules in the case of the sale, exchange, liquidation, or reduction of a partner’s interest, see section 706(c)(2).


26 USC § 704(e)(2)

Scoping language

None: Default is title Scope
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