Sam owns 500 acres of farmland. All of the following are requirements for the fa

Question

Sam owns 500 acres of farmland. All of the following are requirements for the farmland to qualify for and retain special-use (current-use) valuation upon Sam's death except:

A)The farm must constitute at least 50 percent of Sam's gross estate (after certain adjustments for mortgages and liens).

B) Sam must have been a U.S. citizen or resident.

C) Sam or a family member must have owned the real property and used it as a farm for at least 5 of the 8 years immediately prior to Sam's death.

D) The special-use tax savings will not be recaptured as long as the qualified heir does not dispose of the property for at least 2 years following Sam's death.

Explanation / Answer

The correct answer for the same is:-

A) The farm must constitute at least 50 percent of Sam's gross estate (after certain adjustments for mortgages and liens)

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