special use valuation

Definition of "special use valuation"
  1. A rule in the Internal Revenue Code that lets estate taxes for a farm property or for a property used in a small business be calculated on the basis of how the property is presently used, rather than its highest possible market value
How to use "special use valuation" in a sentence
  1. To keep their small family farm within the family, they opted for special use valuation and paid estate taxes based on the farm's current use value, not its potential market value.
  2. Using special use valuation could be beneficial for estate planning purposes of closely held businesses.
  3. The heirs were able to maintain the total value of the inherited property by applying the principles of special use valuation at the time of property transfer.

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