Treatment of certain lapsing rights and restrictions

For purposes of this subtitle, if— For purposes of paragraph (1), the amount determined under this paragraph is the excess (if any) of— The Secretary may by regulations apply this subsection to rights similar to voting and liquidation rights. For purposes of this subtitle, if— For purposes of this subsection, the term “applicable restriction” means any restriction— with respect to which either of the following applies: The term “applicable restriction” shall not include— The Secretary may by regulations provide that other restrictions shall be disregarded in determining the value of the transfer of any interest in a corporation or partnership to a member of the transferor’s family if such restriction has the effect of reducing the value of the transferred interest for purposes of this subtitle but does not ultimately reduce the value of such interest to the transferee. For purposes of this section— The term “control” has the meaning given such term by section 2701(b)(2). The term “member of the family” means, with respect to any individual— The rule of section 2701(e)(3) shall apply for purposes of determining the interests held by any individual.