§ 2703. — Certain rights and restrictions disregarded.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC2703]
TITLE 26--INTERNAL REVENUE CODE
Subtitle B--Estate and Gift Taxes
CHAPTER 14--SPECIAL VALUATION RULES
Sec. 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, Sec. 11602(a), Nov. 5, 1990, 104 Stat.
1388-498.)
