[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 501 Introduced in House (IH)]

  1st Session
                                H. R. 501

To amend the Internal Revenue Code of 1986 to provide that certain cash 
 rents will not result in the recapture of the benefits of the special 
  estate tax valuation rules for certain farm and other real property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 13, 1995

   Mr. Barrett of Nebraska introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that certain cash 
 rents will not result in the recapture of the benefits of the special 
  estate tax valuation rules for certain farm and other real property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farm Estate Fairness Act''.

SEC. 2. NO RECAPTURE OF SPECIAL ESTATE TAX VALUATION BENEFIT WHERE 
              QUALIFIED HEIR RENTS ON NET CASH BASIS TO ANOTHER MEMBER 
              OF DECEDENT'S FAMILY.

    (a) In General.--Subsection (c) of section 2032A of the Internal 
Revenue Code of 1986 (relating to tax treatment of dispositions and 
failures to use for qualified use) is amended by adding at the end 
thereof the following new paragraph:
            ``(8) Exception for net cash renting to another family 
        member.--For purposes of this subsection, a qualified heir 
        shall not be treated as failing to use the qualified real 
        property in a qualified use solely because such heir rents such 
        property to another member of the decedent's family on a net 
        cash basis.''
    (b) Effective Date.--
            (1) The amendment made by this section shall apply with 
        respect to estates of decedents dying after December 31, 1976.
            (2) If credit or refund of any overpayment of tax resulting 
        from the amendment made by this section is barred at any time 
        before the close of the 1-year period beginning on the date of 
        the enactment of this Act by the operation of any law or rule 
        of law, credit or refund of such overpayment shall, 
        nevertheless, be allowed or made if claim therefor is filed 
        before the close of such 1-year period.
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