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the qualified heir may lease the property for cash. ERTA sec.
421, 95 Stat. 306. This narrow exception (not applicable here)
supports the general rule that cash leasing is not an otherwise
qualified use.
In 1988, another addition to section 2032A expanded the
definition of post-death qualified use, enabling a surviving
spouse to rent the property to a family member on a net cash
basis. Technical and Miscellaneous Revenue Act of 1988, Pub. L.
100-647, sec. 6151, 102 Stat. 3342, 3724. This provision
indicates yet again that a post-death net cash lease normally
constitutes a cessation of qualified use. See Williamson v.
Commissioner, supra at 251. Congress did not intend to alter the
existing general rule that the cash rental of special use
property by any other type of qualified heir would be treated as
a recapture event. See H. Rept. 100-795, at 590 (1988) ("Cash
rental of specially valued property is not a qualified use and,
therefore, is treated as a recapture event.").
Case law, too, is replete with support for the proposition
that post-death cash leasing, in areas other than the narrow
statutory exception involving the spouse of the decedent and a
family member, constitutes a cessation of qualified use. Martin
v. Commissioner, 783 F.2d 81 (7th Cir. 1986), held that, if farm
property is leased, such lease must provide an equity interest
for the qualified heir. In other words, the return to the
qualified heir must substantially depend upon farm production.
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