26 U.S. Code § 2031 - Definition of gross estate
In the case of stock and securities of a corporation the value of which, by reason of their not being listed on an exchange and by reason of the absence of sales thereof, cannot be determined with reference to bid and asked prices or with reference to sales prices, the value thereof shall be determined by taking into consideration, in addition to all other factors, the value of stock or securities of corporations engaged in the same or a similar line of business which are listed on an exchange.
For purposes of paragraph (1), the term “applicable percentage” means 40 percent reduced (but not below zero) by 2 percentage points for each percentage point (or fraction thereof) by which the value of the qualified conservation easement is less than 30 percent of the value of the land (  determined without regard to the value of such easement and reduced by the value of any retained development right (as defined in paragraph (5)). The values taken into account under the preceding sentence shall be such values as of the date of the contribution referred to in paragraph (8)(B).
The exclusion provided in paragraph (1) shall not apply to the extent that the land is debt-financed property.
If every person in being who has an interest (whether or not in possession) in the land executes an agreement to extinguish permanently some or all of any development rights (as defined in subparagraph (D)) retained by the donor on or before the date for filing the return of the tax imposed by section 2001, then any tax imposed by section 2001 shall be reduced accordingly. Such agreement shall be filed with the return of the tax imposed by section 2001. The agreement shall be in such form as the Secretary shall prescribe.
For purposes of this paragraph, the term “development right” means any right to use the land subject to the qualified conservation easement in which such right is retained for any commercial purpose which is not subordinate to and directly supportive of the use of such land as a farm for farming purposes (within the meaning of section 2032A(e)(5)).
An executor making the election described in paragraph (6) shall, for purposes of calculating the amount of tax imposed by section 2001, include the value of any development right (as defined in paragraph (5)) retained by the donor in the conveyance of such qualified conservation easement. The computation of tax on any retained development right prescribed in this paragraph shall be done in such manner and on such forms as the Secretary shall prescribe.
The term “qualified conservation easement” means a qualified conservation contribution (as defined in section 170(h)(1)) of a qualified real property interest (as defined in section 170(h)(2)(C)), except that clause (iv) of section 170(h)(4)(A) shall not apply, and the restriction on the use of such interest described in section 170(h)(2)(C) shall include a prohibition on more than a de minimis use for a commercial recreational activity.
The term “member of the decedent’s family” means any member of the family (as defined in section 2032A(e)(2)) of the decedent.
In any case in which the qualified conservation easement is granted after the date of the decedent’s death and on or before the due date (including extensions) for filing the return of tax imposed by section 2001, the deduction under section 2055(f) with respect to such easement shall be allowed to the estate but only if no charitable deduction is allowed under chapter 1 to any person with respect to the grant of such easement.
 So in original. Probably should be “(B)”.
 So in original. There is no corresponding closing parenthesis.
2014—Subsec. (c)(1). Pub. L. 113–295, § 221(a)(96), substituted “(II) $500,000.” for “(B) the exclusion limitation.”
Subsec. (c)(3). Pub. L. 113–295, § 221(a)(96), struck out par. (3), which set out table of exclusion limitations.
Subsec. (c)(10). Pub. L. 113–295, § 221(a)(97)(B), inserted “(as in effect before its repeal)” before period at end.
2001—Subsec. (c)(2). Pub. L. 107–16, § 551(b), inserted at end “The values taken into account under the preceding sentence shall be such values as of the date of the contribution referred to in paragraph (8)(B).”
Subsec. (c)(8)(A)(i). Pub. L. 107–16, § 551(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “which is located—
“(I) in or within 25 miles of an area which, on the date of the decedent’s death, is a metropolitan area (as defined by the Office of Management and Budget),
“(II) in or within 25 miles of an area which, on the date of the decedent’s death, is a national park or wilderness area designated as part of the National Wilderness Preservation System (unless it is determined by the Secretary that land in or within 25 miles of such a park or wilderness area is not under significant development pressure), or
“(III) in or within 10 miles of an area which, on the date of the decedent’s death, is an Urban National Forest (as designated by the Forest Service),”.
1998—Subsec. (c)(6). Pub. L. 105–206, § 6007(g)(2), substituted “on or before the due date (including extensions) for filing the return of tax imposed by section 2001 and shall be made on such return.” for “on the return of the tax imposed by section 2001.”
Subsec. (c)(9). Pub. L. 105–206, § 6007(g)(1), added par. (9). Former par. (9) redesignated (10).
Subsec. (c)(10). Pub. L. 105–277, § 4006(c)(3), substituted “section 2057(e)(3)” for “section 2033A(e)(3)”.
Pub. L. 105–206, § 6007(g)(1), redesignated par. (9) as (10).
1997—Subsecs. (c), (d). Pub. L. 105–34 added subsec. (c) and redesignated former subsec. (c) as (d).
1976—Subsec. (c). Pub. L. 94–455 added subsec. (c).
1962—Subsec. (a). Pub. L. 87–834 struck out provisions which excepted real property situated outside the United States.
Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.
Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.
We truncate results at 20000 items. After that, you're on your own.
- Valuation of Gifts : 2009-10-09
- Valuation of Property in General : 2009-10-09
- Tax On Generation Skipping Transfers : 2008-04-25
- Definition : 2008-04-25
- Imposition of Gift Tax Imposed v. Not Imposed : 2008-04-25
- Partnerships : 2004-11-26
- Partnerships, Corporations, and Trusts : 2004-11-26
- Qualified Conservation Contribution : 2004-04-30
- Definition : 2004-04-30
- Transfers of Easements in Real Property : 2004-04-30
- Definition : 2002-11-22
- Deduction for Estate Tax : 2002-11-22
- Definition : 2002-10-04
- Transfers in General Gift v. Not a Gift : 2002-10-04
- Tax On Generation Skipping Transfers : 2002-10-04
- Definition : 2002-10-04
- Transfers in General Gift v. Not a Gift : 2002-10-04
- Definition : 2002-02-01
- Valuation of Property in General : 2002-01-11
- Transfers Subject to Condition : 2002-01-11
- Definition : 2001-07-13
- Open-End Investment Company Shares : 2001-05-11
- Definition : 2000-05-05
- Definition of Self-Dealing : 2000-04-14
- Partnerships v. Associations : 2000-04-14
- Definition : 2000-04-07
- Tax On Generation Skipping Transfers : 2000-01-28
- Definition : 2000-01-28
- Inclusion of Amounts in Gross Income of Beneficiaries of Estates and TrustsAccumulating Income or Distributing Corpus : 2000-01-28
- Imposition of Gift Tax Imposed v. Not Imposed : 2000-01-28
- Definition : 1999-10-29
- Exceptions : 1999-03-05
- Valuation of Annuity Interest : 1999-03-05
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