special use valuation
- 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
- 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.
- Using special use valuation could be beneficial for estate planning purposes of closely held businesses.
- 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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