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Index  » Subtitle B  » Chapter 14  » I.R.C. 2703

I.R.C. 2703
Certain rights and restrictions disregarded

Current through February 18, 2024 (Pub. L. 118-39)

§ 2702 « Browse » § 2704

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I.R.C. § 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.)

Regulations for I.R.C. 2703 (Return to Top)

§ 25.2703-1Property subject to restrictive arrangements
§ 25.2703-2Effective date

The Regulations cited above were determined based on programmatic database analysis using data provided by the Government Publishing Office. TouchTax attempts to hide unrelated regulation provisions. Due to limited GPO data, however, certain unrelated regulations may appear in some instances.


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