26 CFR 25.2512-4
§ 25.2512-4 Valuation of notes.
United States · 26 CFR — Internal Revenue · Status: effective
Cite this
- Citation
- 26 CFR 25.2512-4, § 25.2512-4 Valuation of notes, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/112745
- Permanent ID
ys:prov:112745@1- SHA-256
575fd44d05d6148ccc46e6cdfbbfe1ac28e802a27d98c684350d3ae17a2b6cab
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
The fair market value of notes, secured or unsecured, is presumed to be the amount of unpaid principal, plus accrued interest to the date of the gift, unless the donor establishes a lower value. Unless returned at face value, plus accrued interest, it must be shown by satisfactory evidence that the note is worth less than the unpaid amount (because of the interest rate, or date of maturity, or other cause), or that the note is uncollectible in part (by reason of the insolvency of the party or parties liable, or for other cause), and that the property, if any, pledged or mortgaged as security is insufficient to satisfy it.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.