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valuation rules in H.R. 5835, 101st Cong., 2d Sess. (1990)--the
House bill underlying OBRA 1990. Provisions for special valuation
rules first appeared in S. 3209, 101st Cong., 2d Sess. (1990)--the
text of which the Senate adopted in lieu of the language passed by
the House in H.R. 5835. S. 3209, section 7210(a), included new
section 2704, which provided in pertinent part as follows:
Treatment of Certain Restrictions and Lapsing Rights.–-
For purposes of this subtitle, the value of any
property shall be determined–-
(1) without regard to any restriction other than a
restriction which by its terms will never lapse * * *
The broad language of the Senate version of section 2704 did
not survive the ensuing conference between the House and Senate
managers of the legislation. Unfortunately, there is no meaningful
explanation of the detailed language or concepts that were made a
part of section 2704 as finally enacted. H. Conf. Rept. 101-964,
at 1137 (1990), 1991-2 C.B. 560, 606, states in pertinent part:
Treatment of certain restrictions and lapsing rights
In general
The conference agreement modifies the provision in
the Senate amendment regarding the effect of certain
restrictions and lapsing rights upon the value of an
interest in a partnership or corporation. These rules
are intended to prevent results similar to that of Estate
of Harrison v. Commissioner, 52 T.C.M. (CCH) 1306 (1987).
These rules do not affect minority discounts or other
discounts available under present law. The conferees
intend that no inference be drawn regarding the transfer
tax effect of restrictions and lapsing rights under
present law.
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