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property. Much of the legislative history addresses pre-death
qualified use; however, this Court has applied the discussion
therein to post-death qualified use as well, since the term
"qualified use" is defined only once in the statute and is used
with reference to both pre- and post-death situations. Martin v.
Commissioner, 84 T.C. at 627.
The House report accompanying the original legislation
stressed that a qualified use requires active farming use of the
property, stating that "The mere passive rental of property will
not qualify". H. Rept. 94-1380, at 23, 1976-3 C.B. (Vol. 3) at
757. Furthermore, regulations add that "The decedent or a member
of the decedent's family must own an equity interest in the farm
operation." Sec. 20.2032A-3(b)(1), Estate Tax Regs.
Several amendments to section 2032A since its introduction
in 1976 have produced narrow exceptions to the initial
proscription on cash leasing. In 1981, Congress expanded the
category of pre-death qualified use to include either a decedent
or a member of his family farming the property prior to
decedent's death. Economic Recovery Tax Act of 1981 (ERTA), Pub.
L. 97-34, sec. 421, 95 Stat. 172, 306. Thus, a cash lease
between a decedent and a family member will not disqualify the
property from special use valuation. H. Rept. 97-201, at 169,
1981-2 C.B. 352, 382.
The ERTA amendment was explained in S. Rept. 97-144, at 133
(1981), 1981-2 C.B. 412, 464, as follows:
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