26 USC § 2703 - Certain rights and restrictions disregarded

---
identifier: "/us/usc/t26/s2703"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 2703 - Certain rights and restrictions disregarded"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "2703"
section_name: "Certain rights and restrictions disregarded"
chapter_number: 14
chapter_name: "SPECIAL VALUATION RULES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 101–508, title XI, § 11602(a), Nov. 5, 1990, 104 Stat. 1388–498.)"
---


# § 2703. Certain rights and restrictions disregarded

**(a)** **General rule** For purposes of this subtitle, the value of any property shall be determined without regard to—

**(1)** any option, agreement, or other right to acquire or use the property at a price less than the fair market value of the property (without regard to such option, agreement, or right), or

**(2)** any restriction on the right to sell or use such property.

**(b)** **Exceptions** Subsection (a) shall not apply to any option, agreement, right, or restriction which meets each of the following requirements:

**(1)** It is a bona fide business arrangement.

**(2)** It is not a device to transfer such property to members of the decedent’s family for less than full and adequate consideration in money or money’s worth.

**(3)** Its terms are comparable to similar arrangements entered into by persons in an arms’ length transaction.

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**Source Credit**: (Added Pub. L. 101–508, title XI, § 11602(a), Nov. 5, 1990, 104 Stat. 1388–498.)