Tax Notes has published an article titled "IRS Publishes 2010, 2011 Interest Rates for Computing Special Use Value of Farm Property." These interest rates are a necessary part of the computation made under an estate's § 2032A election, where in the estate must compute the value of real property used in farming. As explained by Internal Revenue Bulletin 2011-33, which announced the release of this Revenue Ruling, "Under § 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit System Bank loans are used in computing the special use value of real property used as a farm for which an election is made under § 2032A." The IRB goes on to explain that the average annual effective interest rates are calculated in accordance with both § 2032A(e)(7) and § 20.2032A-4(e) of the Estate Tax Regulations.
To learn more about the Farm Credit System or a specific Farm Credit System Bank, visit the Farm Credit Administration and the Federal Farm Credit Banks Funding Corporation.
See "IRS Publishes 2010, 2011 Interest Rates for Computing Special Use Value of Farm Property," 2011 TNT 157-11 (Aug. 15, 2011).
Posted by Jason Tyler Young, Associate Editor, Wealth Strategies Journal.
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