[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 549 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 549

To amend the Internal Revenue Code of 1986 to provide that certain cash 
  rentals of farmland will not cause recapture of special estate tax 
                               valuation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 1997

   Mr. Lugar 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 provide that certain cash 
  rentals of farmland will not cause recapture of special estate tax 
                               valuation.

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

SECTION 1. CERTAIN CASH RENTALS OF FARMLAND NOT TO CAUSE RECAPTURE OF 
              SPECIAL ESTATE TAX VALUATION.

    (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 the 
following new paragraph:
            ``(8) Certain cash rental not to cause recapture.--For 
        purposes of this subsection, a qualified heir shall not be 
        treated as failing to use property in a qualified use solely 
        because such heir rents such property on a net cash basis to a 
        member of the decedent's family or a member of the decedent's 
        spouse's family, but only if, during the period of the lease, 
        such member uses such property in a qualified use.''
    (b) Conforming Amendment.--Section 2032A(b)(5)(A) of such Code is 
amended by striking the last sentence.
    (c) Effective Date; Waiver.--
            (1) Effective date.--The amendments made by this section 
        shall apply with respect to rentals occurring after December 
        31, 1976.
            (2) Waiver of statute of limitation.--If on the date of 
        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 amendments made by this 
        section is barred by any law or rule of law, refund or credit 
        of such overpayment shall, nevertheless, be made or allowed if 
        claim therefor is filed before the date 1 year after the date 
        of enactment of this Act.
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