What is IRC 2032A?

What is IRC 2032A?

Section 2032A of the Internal Revenue Code (IRC) permits certain real property to be valued for Federal estate tax purposes on the basis of its “current use” rather than its “highest and best use.” This commonly is termed “special use valuation.” Real property may qualify for special use valuation if it is located in …

Under what Section does the Special valuation apply to?

Section 2032A
Passed in 1976, Section 2032A Special Use Valuation is a tool to help farm and ranch families preserve their businesses by allowing family business owners to manage their estate tax liability.

Who is a qualified heir?

Qualified heir. The term “qualified heir” means, for any property, a member of the decedent’s family who acquired the property (or to whom the property passes) from the decedent.

Which one of the following states a requirement or characteristic of special use valuation under IRC section 2032A?

Which one of the following is a requirement of Section 2032A special use valuation? If the 2032A property is sold to someone other than a qualified heir within ten years after the decedent’s death, the benefit ma be subject to recapture tax. This is the correct answer.

Which asset would you use a special use valuation for?

U.S. Code Section 2032A allows the executor of a decedent’s estate to elect special use valuation for farm real estate on the decedent’s estate tax return. The asset value will be reduced based on its use as farm property rather than the actual the fair market value.

Which of the following are characteristics of a qualified disclaimer?

To be valid, a qualified disclaimer must meet the following requirements:

  • Must be in writing.
  • Must be within nine months of the gift.
  • No acceptance of the gifted interest or any benefits.
  • Interest passes without any direction on the part of the person making the disclaimer.

What is the alternate valuation date?

Using an alternate valuation date for estate assets allows the executor to potentially reduce estate taxes. Values as of the date of death can be used, or the executor can instead elect to value the property at six months after the date of death.

When can alternate valuation date be used?

six months
Using an alternate valuation date for estate assets allows the executor to potentially reduce estate taxes. Values as of the date of death can be used, or the executor can instead elect to value the property at six months after the date of death.

Who can use the alternate valuation date?

executor

What is the maximum amount of stock that may be redeemed under section 303?

The redemption generally must occur within four years of the stockholder’s death. The maximum amount of stock that may be redeemed is equal to the sum of state and federal estate taxes, costs of estate administration and funeral expenses.