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(B) an interest in an entity carrying on
a trade or business, if
(i) at least--
(I) 50 percent of such entity
is owned (directly or indirectly)
by the decedent and members of the
decedent’s family,
(II) 70 percent of such entity
is so owned by members of 2
families, or
(III) 90 percent of such
entity is so owned by members of 3
families, and
(ii) for purposes of subclause (II)
or (III) of clause (i), at least 30
percent of such entity is so owned by
the decedent and members of the
decedent’s family.
Section 2057(e)(3)(A) goes on to provide specific rules for
calculating the family-ownership test under section
2057(e)(1)(B)(i) and (ii), on the basis of the holding by family
members of “stock” or partnership “capital” interests in the
entity. Section 2057(e)(3)(A) provides in part as follows:
SEC. 2057. FAMILY-OWNED BUSINESS INTERESTS.
(e) Qualified Family-Owned Business Interest.--
* * * * * * *
(3) Rules regarding ownership.--
(A) Ownership of entities.–-For purposes
of paragraph (1)(B)--
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Last modified: March 27, 2008