Small Business Estate and Gift Tax Reform Act

Small Business Estate and Gift Tax Reform Act - Revises, under the Internal Revenue Code, the rate of tax imposed on transfers of taxable estates. Increases the present $60,000 exemption from such tax to $80,000 in 1976, $100,000 in 1978, and $120,000 in 1980. Alters possible gift tax exemptions of a decedent's estate in 1980.

Provides that in the computation of the value of a taxable estate, where a bequest is made to the surviving spouse, the limitation on the aggregate of deductions is revised from 50 percent to $240,000 plus 50 percent of the excess of the adjusted gross estate.

Incorporates in the determination of the value of a decedent's property held as farming property or scenic open property, the consideration of any effective restrictions on its use for other purposes.

Increases the gift tax exemption from $30,000 to $60,000.

Allows a taxpayer to claim, under conditions prescribed by the Secretary of the Treasury or his delegate, an additional exemption which would otherwise be allowed his estate upon his death. Revises the gift tax exemption permitted for gifts to spouses from one half of the transferred property's value to so much of its value as does not exceed $240,000, plus one half of the excess.

Extends from 10 to 15 the number of equal installments in which estate taxes on an estate consisting largely of an interest in closely held business may be paid. Permits the Secretary or his delegate, with the taxpayer's consent, to impose a lien on the closely held business assets which constitute the basis for the extension. Allows such lien in lieu of requiring a bond, but treats it as a bond for purposes of the discharge of fiduciary liability.

Requires the Secretary or his delegate to study: (1) hardship extensions of the time for payment of estate tax and installments thereof; and (2) extensions of time for payment of estate tax where the estate consists largely of an interest in a closely held business as such extensions affect decisions to continue or dispose of a small or closely held business. Orders a report of such study to be submitted to Congress within 12 months of enactment of these provisions, such report to include findings, conclusions, and recommendations for legislation.