[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 792 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 792

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

                              May 22, 1997

  Mr. Daschle (for himself, Mr. Dorgan, Mr. Conrad, and Mr. Johnson) 
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, but only if, during the period 
        of the lease, such member of the decedent's family uses such 
        property in a qualified use.''
    (b) Conforming Amendment.--Section 2032A (b)(5)(A) is amended by 
striking the last sentence.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to rentals occurring after December 31, 1976.
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