110 HR 1929 IH: Save the Family Farm and Ranch Act of
U.S. House of Representatives
2007-04-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Save the Family Farm and Ranch Act of
2007
.
2.Exclusion from
gross estate of certain farmland so long as farmland use continues
(a)Part III of subchapter A of chapter 11 of the Internal
Revenue Code of 1986 (relating to gross estate) is amended by inserting after
section 2033 the following new section:
2033A.Exclusion of
certain farmland so long as use as farmland continues
(a)In the case of an estate of a decedent to which this
section applies, the value of the gross estate shall not include the adjusted
value of qualified farmland included in the estate.
(b)Estates to which
section appliesThis section shall apply to an estate if—
(1)the decedent was
(at the date of the decedent’s death) a citizen or resident of the United
States,
(2)with respect to
each of 3 or more of the 5 consecutive taxable years ending with the decedent’s
last taxable year, the decedent’s gross income from the trade or business of
farming exceeds 50 percent of the decedent’s gross income, and
(3)during the 8-year
period ending on the date of the decedent’s death there have been periods
aggregating 5 years or more during which—
(A)the qualified
farmland was owned by the decedent or a member of the decedent’s family,
and
(B)there was material
participation (within the meaning of section 2032A(e)(6)) by the decedent or a
member of the decedent’s family in the operation of such farmland.
Rules
similar to the rules of paragraphs (4) and (5) of section 2032A(b) shall apply
for purposes of subparagraph (B).(c)For
purposes of this section—
(1)The term qualified farmland means any real
property—
(A)which is located
in the United States,
(B)which is used as a
farm for farming purposes (within the meaning of section 2032A(e)), and
(C)which was acquired
from or passed from the decedent to a qualified heir of the decedent and which,
on the date of the decedent’s death, was being so used by the decedent or a
member of the decedent’s family.
(2)The term adjusted value means the value of
farmland for purposes of this chapter (determined without regard to this
section), reduced by the amount deductible under paragraph (3) or (4) of
section 2053(a).
(3)Any other term used in
this section which is also used in section 2032A shall have the same meaning
given such term by section 2032A.
(d)Tax treatment of
dispositions and failures to use for farming purposes
(1)Imposition of
recapture taxIf, at any time after the decedent’s death and
before the death of the qualified heir—
(A)the qualified heir
disposes of any interest in qualified farmland (other than by a disposition to
a member of his family), or
(B)the qualified heir
ceases to use the real property which was acquired (or passed) from the
decedent as a farm for farming purposes, then, there is hereby imposed a
recapture tax.
(2)Amount of
recapture tax, etcRules similar to the rules of section 2032A(c)
with respect to the additional estate tax shall apply for purposes of this
subsection with respect to the recapture tax.
(e)Application of
other rulesRules similar to the rules of subsections (e), (f),
(g), (h), and (i) of section 2032A shall apply for purposes of this
section.
(b)The table of sections for part III of subchapter A of
chapter 11 of such Code is amended by inserting after the item relating to
section 2033 the following new item:
Sec. 2033A. Exclusion of certain farmland so long as use as
farmland
continues.
.
(c)The amendments made by this section shall apply to estates
of decedents dying after the date of the enactment of this Act.