---
kind: "section"
citation: "26 U.S.C. § 2703"
title: "26"
title_heading: "Internal Revenue Code"
number: "2703"
heading: "Certain rights and restrictions disregarded"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/2703"
units:
  - "Subtitle B — Estate and Gift Taxes"
  - "Chapter 14 — Special Valuation Rules"
---

# §2703. Certain rights and restrictions disregarded

- (a) **General rule—** For purposes of this subtitle, the value of any property shall be determined without regard to—
  - (1) any option, agreement, or other right to acquire or use the property at a price less than the fair market value of the property (without regard to such option, agreement, or right), or
  - (2) any restriction on the right to sell or use such property.
- (b) **Exceptions—** [Subsection (a)](#a) shall not apply to any option, agreement, right, or restriction which meets each of the following requirements:
  - (1) It is a bona fide business arrangement.
  - (2) It is not a device to transfer such property to members of the decedent’s family for less than full and adequate consideration in money or money’s worth.
  - (3) Its terms are comparable to similar arrangements entered into by persons in an arms’ length transaction.

## Source credit

(Added Pub. L. 101–508, title XI, § 11602(a), Nov. 5, 1990, 104 Stat. 1388–498.)