26 U.S.C. § 2703
§ 2703. Certain rights and restrictions disregarded
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1990 by the Omnibus Budget Reconciliation Act of 1990. Last changed November 5, 1990 by the Omnibus Budget Reconciliation Act of 1990.
Every change, newest first (1)
- November 5, 1990Omnibus Budget Reconciliation Act of 1990 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
For purposes of this subtitle, the value of any property shall be determined without regard to—
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
any restriction on the right to sell or use such property.
Subsection (a) shall not apply to any option, agreement, right, or restriction which meets each of the following requirements:
It is a bona fide business arrangement.
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.
Its terms are comparable to similar arrangements entered into by persons in an arms’ length transaction.