PUBLIC LAW 105-206-JULY 22, 1998 112 STAT. 809 interest bears to the value of all qualified family-owned business interests described in subsection (b)(2). "(ii) ADJUSTED TAX DIFFERENCE WITH RESPECT TO , THE ESTATE.—For purposes of clause (i), the term 'adjusted tax difference with respect to the estate' means the excess of what would have been the estate tax Hability but for the election under this section over the estate tax liability. For purposes of this clause, the term 'estate tax liability means the tax imposed by section 2001 reduced by the credits allowable against such tax.". (5)(A) Paragraph (1) of section 2057(e) of the 1986 Code , (as so redesignated) is amended by adding at the end the following new flush sentence: "For purposes of the preceding sentence, a decedent shall be treated as engaged in a trade or business if any member of the decedent's family is engaged in such trade or business.". (B) Subsection (f) of section 2057 of the 1986 Code (as so redesignated) is amended by adding at the end the following new paragraph: " (3) USE IN TRADE OR BUSINESS BY FAMILY MEMBERS.— A qualified heir shall not be treated as disposing of an interest described in subsection (e)(1)(A) by reason of ceasing to be engaged in a trade or business so long as the property to wluch such interest relates is used in a trade or business by any member of such individual's family.". (6) Paragraph (1) of section 2057(g) of the 1986 Code (as so redesignated) is amended by striking "or (M)". (7) Paragraph (3) of section 2057(i) of the 1986 Code (as so redesignated) is amended by redesignating subparagraphs (L), (M), and (N) as subparagraphs (N), (O), and (P), respectively, and by inserting after subparagraph (K) the following new subparagraphs: "(L) Section 2032A(g) (relating to application to interests in partnerships, corporations, and trusts). "(M) Subsections (h) and (i) of section 2032A.". (c) AMENDMENTS RELATED TO SECTION 503 OF THE 1997 ACT. — (1) Clause (iii) of section 6166(b)(7)(A) of the 1986 Code is amended to read as follows: "(iii) for purposes of applying section 6601(j), the 2-percent portion (as defined in such section) shall DG iii*6£Lii6d SLQ lGinsr ZGITO ** (2) Clause (iii) of section 6166(b)(8)(A) of the 1986 Code is amended to read as follows: "(iii) 2-PERCENT INTEREST RATE NOT TO APPLY. — For purposes of applying section 6601(j), the 2-percent portion (as defined in such section) shall be treated as being zero.". (d) AMENDMENT RELATED TO SECTION 505 OF THE 1997 ACT. — Paragraphs (1) and (2) of section 7479(a) of the 1986 Code are each amended by striking "an estate," and inserting "an estate (or with respect to any property included therein),". (e) AMENDMENTS RELATED TO SECTION 506 OF THE 1997 ACT. — (1) Paragraph (1) of section 506(e) of the 1997 Act is 26 USC 2001 amended by striking "and (c)" and inserting ", (c), and (d)". note. (2)(A) Paragraph (9) of section 6501(c) of the 1986 Code is amended by striMng the last sentence.
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