A bill to amend the Internal Revenue Code of 1986 to extend treatment of certain rents under section 2032A to lineal descendants.

Amends the Internal Revenue Code with respect to the valuation of farm land for estate tax purposes, permitting a surviving spouse or lineal descendant to enter into a cash lease of farm or other real property with a family member and still have the property valued under use value principles rather than according to its highest and best use.

 
S 1045 IS
102d CONGRESS
1st Session
S. 1045
To amend the Internal Revenue Code of 1986 to extend treatment of certain
rents under section 2032A to lineal descendants.
IN THE SENATE OF THE UNITED STATES
May 14 (legislative day, APRIL 25), 1991
Mrs. KASSEBAUM (for herself, Mr. DOLE, and Mr. CONRAD) introduced the
following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to extend treatment of certain
rents under section 2032A to lineal descendants.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. EXTENSION OF TREATMENT OF CERTAIN RENTS UNDER SECTION 2032A TO
LINEAL DESCENDANTS.
  (a) GENERAL RULE- Paragraph (7) of section 2032A(c) of the Internal Revenue
  Code of 1986 (relating to special rules for tax treatment of dispositions
  and failures to use for qualified use) is amended by adding at the end
  thereof the following new subparagraph:
  `(E) CERTAIN RENTS TREATED AS QUALIFIED USE- For purposes of this subsection,
  a surviving spouse or lineal descendant of the decedent shall not be treated
  as failing to use qualified real property in a qualified use solely because
  such spouse or descendant rents such property to a member of the family
  of such spouse or descendant on a net cash basis. For purposes of the
  preceding sentence, a legally adopted child of an individual shall be
  treated as the child of such individual by blood.'
  (b) CONFORMING AMENDMENT- Section 2032A(b)(5)(A) of such Code is amended
  by striking out the last sentence.
  (c) EFFECTIVE DATE-
  (1) IN GENERAL- The amendments made by this section shall take effect as
  if included in section 6151(a) of the Technical and Miscellaneous Revenue
  Act of 1988.
  (2) WAIVER OF STATUTE OF LIMITATIONS- If on the date of the enactment
  of this Act (or at any time within 1 year after such date of enactment)
  refund or credit of any overpayment of tax resulting from the application
  of the amendment made by subsection (a) is barred by any law or rule of
  law, refund or credit of such overpayment shall, nevertheless, be made or
  allowed if claim therefore is filed before the date 1 year after the date
  of the enactment of this Act.