Estate of Duane B. Farnam, Deceased, Mark D. Farnam, Personal Representative, and Estate of Lois L. Farnam, Deceased, Mark D. Farnam, Personal Representative - Page 8
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statute is ambiguous, as section 2057 clearly is, we look to the
statute’s legislative history and other authorities for
assistance in determining legislative intent. Burlington N. R.R.
v. Okla. Tax Commn., 481 U.S. 454, 461 (1987); Fernandez v.
Commissioner, supra at 329-330.
Section 2057(a) allows an estate tax deduction from the
value of a gross estate of up to $675,000 for the value of QFOBIs
a decedent owned at the time of death.3
Section 2057(a) provides in part as follows:
SEC. 2057. FAMILY-OWNED BUSINESS INTERESTS.
(a) General Rule.--
(1) Allowance of deduction.--For purposes of
the tax imposed by section 2001, in the case of an
estate of a decedent to which this section
applies, the value of the taxable estate shall be
determined by deducting from the value of the
gross estate the adjusted value of the qualified
family-owned business interests of the decedent
which are described in subsection (b)(2).
3 The qualified family-owned business interest (QFOBI)
allowance was first enacted in the Taxpayer Relief Act of 1997,
Pub. L. 105-34, sec. 502, 111 Stat. 847, as a tax exclusion under
sec. 2033A. In 1998, the QFOBI provision was moved to sec. 2057
and was converted from a tax exclusion to a tax deduction.
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 6007(b), 112 Stat. 807. Notwithstanding
this conversion from an exclusion to a deduction, sec. 2057 is
substantially the same as former sec. 2033A. The Economic Growth
and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, sec.
521(d), 115 Stat. 72, repealed sec. 2057 for estates of decedents
dying after Dec. 31, 2003. In the absence of intervening estate
tax legislation, sec. 2057 is scheduled to be reinstated for
estates of decedents dying after Dec. 31, 2010. Id. sec. 901(a)
and (b), 115 Stat. 150.
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Last modified: March 27, 2008