92 STAT. 2882
26 USC 2040.
26 USC 2032A.
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PUBLIC LAW 95-600—NOV. 6, 1978 "(A) such joint interest was created by the decedent, the decedent's spouse, or both, and "(B) in the case of a joint tenancy, only the decedent and the decedent's spouse are joint tenants. "(4) SECTION 2040(C) PROPERTY DEFINED.—For purposes of paragraph (1), the term 'section 2040(c) property' means any interest in any real or tangible personal property which is devoted to use as a farm or used for farming purposes (within the meaning of paragraphs (4) and (5) of section 2032A(e)) or is used in any other trade or business, "(5) SECTION 2040(c) VALUE.—For purposes of paragraph (1), the term 'section 2040(c) value' means— "(A) the excess of the value of the eligible joint interest over the adjusted consideration furnished by the decedent, the decedent's spouse, or both, multiplied by "(B) 2 percent for each taxable year in which the spouse materially participated in the operation of the farm or other trade or business but not to exceed 50 percent. "(6) ADJUSTED CONSIDERATION.—For the purpose of this subsection, the term 'adjusted consideration' means— "(A) the consideration furnished by the individual concerned (not taking into account any consideration in the form of income or gain from the business of which the section 2040(c) property is a part) determined under rules similar to the rules set forth in subsection (a), and "(B) an amount equal to the amount of interest which the consideration referred to in subparagraph (A) would have earned over the period in which it was invested in the farm or other business if it had been earning interest throughout such period at 6 percent simple interest. "(7) MATERIAL PARTICIPATION.—For purposes of paragraph (1),
26 USC 1402.
26 USC 6075. 26 USC 2001.
26 USC 2040 note.
material participation shall be determined in a manner similar to the manner used for purposes of paragraph (1) of section 1402(a) (relating to net earnings from self-employment). "(8) VALUE.—For purposes of this subsection, except where the context clearly indicates otherwise, the term 'value' means value determined without regard to this subsection. (9) ELECTION TO HAVE SUBSECTION APPLY.—This subsection shall apply with respect to a joint interest only if the estate of the decedent elects to have this subsection apply to such interest. Such an election shall be made not later than the time prescribed by section 6075(a) for filing the return of tax imposed by section 2001 (including extensions thereof), and shall be made in such manner as the Secretary shall by regulations prescribe." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to estates of decedents dying after December 31, 1978. SEC. 512. TREATMENT OF CERTAIN INTERESTS HELD BY DECEDENT'S FAMILY FOR PURPOSES OF THE EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX PROVIDED BY SECTION 6166. (a) INTEREST HELD BY MEMBER OF DECEDENT'S FAMILY TREATED AS
26 USC 6166.
HELD BY DECEDENT.—Paragraph (2) of section 6166(b) (relating to definitions and special rules) is amended by adding at the end thereof the following new subparagraph: "(D) CERTAIN INTERESTS HELD BY MEMBERS OF DECEDENT'S
FAMILY.—All stock and all partnership interests held by the decedent or by any member of his family (within the mean-
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