Internal Revenue Code Section 2701

Internal Revenue Code Section 2701 addresses the valuation of certain transfers of property within family-controlled arrangements, particularly focusing on the transfer of interests in family-controlled entities like trusts or partnerships. It limits the use of valuation discounts for minority interests, non-controlling interests, or restrictions placed on transferring the property when determining gift or estate tax. Essentially, the law aims to prevent undervaluation of family transfers for tax avoidance purposes by ensuring that the value of gifted interests reflects their true economic worth, considering control and marketability limitations.