PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-499 "(2) AMOUNT OP TRANSFER.— For purposes of paragraph (1), the amount determined under this paragraph is the excess (if any) of— "(A) the value of all interests in the entity held by the individual described in paragraph (1) immediately before the lapse (determined as if the voting and liquidation rights were nonlapsing), over "(B) the value of such interests immediately after the lapse. "(3) SIMILAR RIGHTS.—The Secretary may by regulations apply this subsection to rights similar to voting and liquidation rights. "(b) CERTAIN RESTRICTIONS ON LIQUIDATION DISREGARDED. — "(1) IN GENERAL.—For purposes of this subtitle, if— "(A) there is a transfer of an interest in a corporation or partnership to (or for the benefit of) a member of the transferor's family, and "(B) the transferor and members of the transferor's family hold, immediately before the trsinsfer, control of the entity, any applicable restriction shall be disregarded in determining the vsdue of the transferred interest. "(2) APPLICABLE RESTRICTION. — For purposes of this subsection, the term 'applicable restriction' means any restriction— "(A) which effectively limits the ability of the corporation or partnership to liquidate, and ' (B) with respect to which either of the following applies: "(i) The restriction lapses, in whole or in part, after the transfer referred to in paragraph (1). "(ii) The transferor or any member of the transferor's family, either alone or collectively, has the right after such transfer to remove, in whole or in part, the restriction. "(3) EXCEPTIONS.—The term 'applicable restriction' shall not include— "(A) any commercially reasonable restriction which arises as part of any financing by the corporation or partnership with a person who is not related to the transferor or transferee, or a member of the family of either, or "(B) any restriction imposed, or required to be imposed, by any Federal or State law. "(4) OTHER RESTRICTIONS.— The Secretary may by regulations provide that other restrictions shall be disregarded in determining the value of the transfer of any interest in a corporation or partnership to a member of the transferor's family if such restriction has the effect of reducing the value of the transferred interest for purposes of this subtitle but does not ultimately reduce the value of such interest to the transferee. "(c) DEFINITIONS AND SPECIAL RULES.— For purposes of this section— "(1) CONTROL. —The term 'control' has the meaning given such term by section 2701(b)(2). "(2) MEMBER OF THE FAMILY. —The term 'member of the family' means, with respect to any individual— "(A) such individual's spouse, "(B) any ancestor or lineal descendant of such individual or such individual's spouse.