PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1857
" (A) 50 percent or more of the adjusted value of the gross estate consists of the adjusted value of real or personal property which— " (i) on the date of the decedent's death, was being used for a qualified use, and " (ii) was acquired from or passed from the decedent to a qualified heir of the decedent. " (B) 25 percent or more of the adjusted value of the gross estate consists of the adjusted value of real property which meets the requirements of subparagraphs (A) (ii) and (C), " (C) 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— " (i) such real property was owned by the decedent or a member of the decedent's family and used for a qualified use, and " ( i i) there was material participation by the decedent or a member of the decedent's family in the operation of the farm or other business, and " (D) such real property is designated in the agreement referred to in subsection (d)(2). " (2) QUALIFIED USE.—For purposes of this section, the term 'qualified use' means the devotion of the property to any of the following: " (A) use as a farm for farming purposes, or " (B) use i n a trade or business other than the trade or business of farming. " (3) ADJUSTED VALUE.—For purposes of paragraph
(1), the
term 'adjusted value' means— " (A) in the case of the gross estate, the value of the gross estate for purposes of this chapter (determined without regard to this section), reduced by any amounts allowable as a deduction under paragraph (4) of section 2053(a), or " (B) i n the case of any real or personal property, the value of such property for purposes of this chapter (determined without regard to this section), reduced by any amounts allowable as a deduction in respect of such property under paragraph (4) of section 2053(a). " (c) T A X T R E A T M E N T OF DISPOSITIONS AND FAILURES To U S E FOR QUALIFIED U S E. — " (1) IMPOSITION OF ADDITIONAL ESTATE TAX.—If, w i t h i n 15 years
after the decedent's death and before the death of the qualified heir— " (A) the qualified heir disposes of any interest in qualified real property (other than by a disposition to a member of his f a m i l y), or " (B) the qualified heir ceases to use for the qualified use the qualified real property which was acquired (or passed) from the decedent, then, there is hereby imposed a n additional estate tax. " (2) A M O U N T OF ADDITIONAL TAX.—
" (A) IN GENERAL.—The amount of the additional tax imposed by paragraph (1) with respect to any interest shall be the amount equal to the lesser of— " (i) the adjusted tax difference attributable to such interest, or
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