Page:United States Statutes at Large Volume 90 Part 2.djvu/388

 90 STAT. 1856 26 USC 2040.

PUBLIC LAW 94-455—OCT. 4, 1976 (3) CLERICAL AMENDMENT.—Section 2040 is amended by striking out " The value" and inserting in lieu thereof the following: " (a) GENERAL RULE, — The value", (d) EFFECTIVE D A T E S. —

26 USC 2056 °ote.

26 USC 2523 °°*^26 USC 2040 note.

26 USC 2032A.

(1)(A) E x c e p t as provided in subparagraph (B), the amendment made by subsection (a) shall apply with respect to the estates of decedents dying after December 31, 1976. (B) I f (i) the decedent dies after December 31, 1976, and before January 1, 1979, (ii) by reason of the death of the decedent property passes from the decedent or is acquired from the decedent under a will executed before January 1, 1977, or a trust created before such date, which contains a formula expressly providing that the spouse is to receive the maximum amount of property qualifying for the m a r i t a l deduction allowable by Federal law, (iii) the formula referred to in clause (ii) was not amended at any time after December 31, 1976, and before the death of the decedent, and (iv) the State does not enact a statute applicable to such estate which construes this t y p e of formula as referring to the marital deducton allowable by Federal law as amended by subsection (a), then the amendment made by subsection (a) shall not apply to the estate of such decedent. ^2) The amendment made by subsection (b) shall apply to gifts made after December 31, 1976. (3) The amendments made by subsection (c) shall apply to joint interests created after December 31, 1976. SEC. 2003. VALUATION FOR PURPOSES OF THE FEDERAL ESTATE TAX OF CERTAIN REAL PROPERTY DEVOTED TO FARMING OR CLOSELY HELD BUSINESSES. (a) GENERAL RULE. — Part III of subchapter A of chapter 11 (relating to gross estate) is amended by inserting after section 2032 the following new section: "SEC. 2032A. VALUATION OF CERTAIN FARM, ETC., REAL PROPERTY. "(a)

V A L U E BASED ON U S E U N D E R W H I C H PROPERTY Q U A L I F I E S. — " (1) GENERAL RULE.—If—

" (A) the decedent was (at the time of his death) a citizen or resident of the United States, and " (B) the executor elects the application of this section and files the agreement referred to in subsection (d)(2), then, for purposes of this chapter, the value of qualified real property shall be its value for the use under which it qualifies, under subsection (b), as qualified real property. " (2) LIMITATION.—The aggregate decrease in the value of qualified real property taken into account for purposes of this chapter which results from the application of paragraph (1) with respect to any decedent shall not exceed $500,000. "(b)

QUALIFIED R E A L PROPERTY.—

" (1) IN GENERAL.—For purposes of this section, the term 'qualified real property ' means real property located in the United States which, on the date of the decedent's death, was being used for a qualified use, b u t only if—

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