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the five factor method of section 2032A(e)(8). See sec.
2032A(e)(7)(C).
B. Section 2032A(e)(8)6--The Five Factor Method
The second valuation method is set forth under section
2032A(e)(8). This method is based upon the application of five
6 SEC. 2032A(e). Definitions; Special Rules.–For
purposes of this section–
* * * * * * *
(8) Method of valuing closely held business
interests, etc.-–In any case to which paragraph (7)(A)
does not apply, the following factors shall apply in
determining the value of any qualified real property:
(A) The capitalization of income which the
property can be expected to yield for farming or
closely held business purposes over a reasonable
period of time under prudent management using
traditional cropping patterns for the area, taking
into account soil capacity, terrain configuration,
and similar factors,
(B) The capitalization of the fair rental
value of the land for farmland or closely held
business purposes,
(C) Assessed land values in a State which
provides a differential or use value assessment
law for farmland or closely held business,
(D) Comparable sales of other farm or closely
held business land in the same geographical area
far enough removed from a metropolitan or resort
area so that nonagricultural use is not a
significant factor in the sales price, and
(E) Any other factor which fairly values the
farm or closely held business value of the
property.
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