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period, entailing the imposition of additional estate tax under
section 2032A(c).
Section 2032A(c)(1), which imposes the recapture tax, is as
follows:
(1) Imposition of additional estate tax.--If,
within 10 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 family), 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 an additional estate tax.
The term "qualified use" is defined in section 2032A(b)(2)
as follows:
(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 in a trade or business other than the
trade or business of farming.
Cessation of qualified use as provided in section
2032A(c)(1)(B) is amplified in section 2032A(c)(6):
(6) Cessation of qualified use.--For purposes of
paragraph (1)(B), real property shall cease to be used
for the qualified use if--
(A) such property ceases to be used for the
qualified use set forth in subparagraph (A) or (B)
of subsection (b)(2) under which the property
qualified under subsection (b), or
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Last modified: May 25, 2011