Where special use valuation has been elected, a question since publication of regulations in 1980 has been whether cash rent leasing in the post-death period triggered recapture of special use valuation benefits. The cases and the rulings have been in agreement that a cash rent lease or a "net lease"7led to recapture of special use valuation benefits after the two-year "grace" period immediately after death. Because cash rent leases in the pre-death period have been permitted (for purposes of special use valuation eligibility) if to a member of the family of the decedent-to-be, the two-year grace period was created to allow time for pre-death cash rent leases to be renegotiated to crop share leases or other arrangements after death.



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