interest in a closely held business
Defined in 1 place of the United States Code.
For purposes of this section, the term “interest in a closely held business” means—
(A) an interest as a proprietor in a trade or business carried on as a proprietorship;
(B) an interest as a partner in a partnership carrying on a trade or business, if—
(i) 20 percent or more of the total capital interest in such partnership is included in determining the gross estate of the decedent, or
(ii) such partnership had 15 or fewer partners; or
(C) stock in a corporation carrying on a trade or business if—
(i) 20 percent or more in value of the voting stock of such corporation is included in determining the gross estate of the decedent, or
(ii) such corporation had 15 or fewer shareholders.
Source
- 1994–200126 U.S.C. § 6166Internal Revenue Code · Extension of time for payment of estate tax where estate consists largely of interest in closely held business · for purposes of this section
For purposes of this section, the term “interest in a closely held business” means—
(A) an interest as a proprietor in a trade or business carried on as a proprietorship;
(B) an interest as a partner in a partnership carrying on a trade or business, if—
(i) 20 percent or more of the total capital interest in such partnership is included in determining the gross estate of the decedent, or
(ii) such partnership had 45 or fewer partners; or
(C) stock in a corporation carrying on a trade or business if—
(i) 20 percent or more in value of the voting stock of such corporation is included in determining the gross estate of the decedent, or
(ii) such corporation had 45 or fewer shareholders.
Source
- 2001–present26 U.S.C. § 6166Internal Revenue Code · Extension of time for payment of estate tax where estate consists largely of interest in closely held business · for purposes of this section