Estates.

CFR · 2024-01-01 · US · Title 7

(a) For 2 program years after the program year in which a person dies, the person's estate will be considered to be actively engaged in farming if: (1) The estate, as a legal entity, makes a significant contribution of either: (i) Capital, equipment, or land or (ii) A combination of capital, equipment, or land; and (2) The personal representative or heirs of the estate collectively make a significant contribution of either: (i) Active personal labor or active personal management or (ii) The combination of active personal labor and active personal management; and (3) The estate has a share of the profits or losses from the farming operation commensurate with the legal entity's contributions to the operation; (4) The estate makes contributions to the farming operation that are at risk for a loss, with the level of risk being commensurate with the legal entity's claimed share of the farming operation; and (5) The representative of the estate has provided a tax identification number for the estate and a copy of a court order, will, or other legal document that identifies the heir(s) and tax identification number(s) of the heir(s). (b) For a farming operation conducted by an estate in which the capital, land, or equipment is contributed by the estate, the capital, land, or equipment: (1) To meet the requirements of paragraph (a) of this section, must be contributed directly by the estate and must not be acquired as a loan made to, guaranteed, co-signed, or secured by any person, l

official document · source cfr-2024 · id 7:§ 1400.206