Under current law, qualified small business and qualified farm property must be continuously owned by the decedent for three years preceding the decedent’s date of death, among several other requirements. This bill modifies that requirement to allow ownership by the decedent or decedent’s spouse in various forms in the continuous three-year period to qualify for this aspect of the subtraction.
Sections 1 and 4. Definitions. Correct cross-references in the qualified property subtraction provisions unrelated to the underlying proposal in the bill. Effective retroactively for estates of decedents dying after December 31, 2016.
Section 2. Qualified small business property. Modifies the requirement for the three-year holding period prior to the decedent’s death to allow ownership of the property by the decedent’s spouse, or undivided or joint interest in the property between the decedent and decedent’s spouse, to meet the property ownership requirement of the qualified small business property subtraction.
Section 3. Qualified farm property. Modifies the requirement for the three-year holding period prior to the decedent’s death to allow ownership of the property by the decedent’s spouse, or undivided or joint interest in the property between the decedent and decedent’s spouse, to meet the property ownership requirement of the qualified farm property subtraction.
Sections 2 and 3 are effective for estates of decedents dying after December 31, 2017.
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