§ 2703. Certain rights and restrictions disregarded

• (a) 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) Subsection (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.