Page:United States Statutes at Large Volume 90 Part 2.djvu/395

 PUBLIC LAW 94-455—OCT. 4, 1976 5 years after the date prescribed by section 6151(a) for payment of the tax, and each succeeding installment shall be paid on o r before the date which is 1 year after the date prescribed by this paragraph for payment of the preceding installment.

90 STAT. 1863 26 USC 6151,.

" (4) ELIGIBILITY FOR ELECTION.—No election may be m a d e under

this section by the executor of the estate of any decedent if an election under section 6166A applies with respect to the estate Ante, p. 1862. of such decedent. "(b)

DEFINITIONS AND SPECIAL RULES. — " (1) INTEREST I N CLOSELY HELD BUSINESS.—For purposes of t h i s

section, the term 'interest i n a closely held business' means— " (A) an interest as a proprietor in a trade or business carried on as a p r o p r i e to r s h i p; " (B) an interest as a part n e r in a partnership carrying on a trade or business, if— " (i) 20 percent or more of the total capital interest i n such partnership is included in determining the gross estate of the decedent, or " ( i i) such partnership h a d 15 or fewer part n e r s; or " (C) stock in a corporation c a r r y i n g on a trade or business if— " (i) 20 percent or more i n value of the voting stock of such corporation is included in determining the gross estate of the decedent, or " ( i i) such corporation h a d 15 or fewer shareholders. "(2)

RULES 'FOR APPLYING PARAGRAPH (i). — For purposes of

paragraph (1) — " (A) T I M E FOR TESTING.—Determinations shall be made as

of the time immediately before the decedent's death. "(B)

CERTAIN INTERESTS HELD BY HUSBAND AND W I F E. —

Stock or a partnership interest which— " (i) is community property of a husband and wife (or the income from which is community income) under the applicable community property law of a State, or " ( i i) is held by a husband and wife as joint tenants, tenants by the entirety, o r tenants in common, shall be treated as owned by one shareholder or one partner, as the case may be. "(C)

INDIRECT O W N E R S H I P. — Property owned, directly or

indirectly, by or for a corporation, partnership, estate, or t r u s t shall be considered as being owned proportionately by or for its shareholders, partners, or beneficiaries. For purposes of the preceding sentence, a person shall be treated as a beneficiary of any trust only if such person has a present interest in the trust. " (3) FARMHOUSES AND CERTAIN OTHER STRUCTURES TAKEN INTO

ACCOUNT.—For purposes of the 65-percent requirement of subsection (a)(1), an interest in a closely held business which is the business of farming includes an interest in residential buildings and related improvements on the farm which are occupied on a regular basis by the owner or lessee of the farm or by persons employed by such owner or lessee for purposes of operating or maintaining the farm, " (4) V A L U E. — For purposes of this section, value shall be value determined for purposes of chapter 11 (relating to estate tax). " (5) CLOSELY HELD BUSINESS A M O U N T. — For purposes of t h i s

section, the term 'closely held business amount' means the value of

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