The rule has been well settled since publication of the "qualified use" regulations in 1980 that land must meet a pre-death qualified use test to be eligible for special use valuation. A similar requirement was imposed in the recapture period after death to avoid recapture of the special use valuation benefits. A recent case has addressed an important issue in application of the post-death test; the case could also be important in pre-death eligibility as well.
Harl, Neil E.
"Cash Rental of Land After Death to Family Corporation: No Special Use Valuation Recapture,"
Agricultural Law Digest: Vol. 5
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol5/iss10/1