Estate and Gift Tax Amendments Act

Estate and Gift Tax Amendments Act - Amends the Internal Revenue Code to increase the minimum value for carryover basis property from $60,000 to $175,000. Specifies formulae for determining adjustments to basis for December 31, 1976, fair market value for marketable bonds and securities and other property, and minimum basis for non-business tangible personal property and personal residence.

Decreases from $100 to $50 per failure the penalty an executor must pay for failing to furnish beneficiaries specified information with respect to carryover basis property.

Amends the formula for computing the income tax deduction for estate taxes paid on income in respect of a decedent. Specifies a new formula for the increase in the basis of gifts because of the Federal gift tax paid attributable to appreciation, and allows an increase in basis for the amount of a State gift tax by the amount of such tax attributable to appreciation in value of the gift.

Deems an agricultural or horticultural commodity sold or exchanged by an estate property used in a trade or business, if such sale or exchange occurs during the year following the decedent's death, even though the estate did not engage in farming.

Expands the material participation criteria for the special use valuation of certain farm and other real property to provide for the satisfaction of the requirement where the decedent or his spouse has so participated for any 15 years before the decedent's death. Revises the material participation requirement for heirs to allow satisfaction of the requirement by an heir's agents or fiduciaries under specified conditions.

Requires the uniform definition of interests in closely held businesses for purposes of qualifying for the alternative time extensions for paying estate taxes on estates consisting mostly of such businesses.

Extends the capital gains treatment for redemptions of stock of a closely held business to pay estate taxes to the amount necessary to pay the income taxes generated by the redemption.