115 STAT. 92 PUBLIC LAW 107-16—JUNE 7, 2001 Subtitle H—Extension of Time for Payment of Estate Tax SEC. 571. INCREASE IN NUMBER OF ALLOWABLE PARTNERS AND SHAREHOLDERS IN CLOSELY HELD BUSINESSES. (a) IN GENERAL. — Paragraphs (l)(B)(ii), (l)(C)(ii), and 26 USC 6166. (9)(B)(iii)(I) of section 6166(b) (relating to definitions and special rules) are each amended by striking "15" and inserting "45". Applicability. (b) EFFECTIVE DATE.— The amendments made by this section 26 USC 6166 shall apply to estates of decedents dying after December 31, 2001. note. SEC. 572. EXPANSION OF AVAILABILITY OF INSTALLMENT PAYMENT FOR ESTATES WITH INTERESTS QUALIFYING LENDING AND FINANCE BUSINESSES. (a) IN GENERAL. —Section 6166(b) (relating to definitions and special rules) is amended by adding at the end the following new paragraph: "(10) STOCK IN QUALIFYING LENDING AND FINANCE BUSINESS TREATED AS STOCK IN AN ACTIVE TRADE OR BUSINESS COMPANY.— "(A) IN GENERAL.— If the executor elects the benefits of this paragraph, then— "(i) STOCK IN QUALIFYING LENDING AND FINANCE BUSINESS TREATED AS STOCK IN AN ACTIVE TRADE OR BUSINESS COMPANY.— For purposes of this section, any asset used in a qualifying lending and finance business shall be treated as an asset which is used in carrying on a trade or business. "(ii) 5-YEAR DEFERRAL FOR PRINCIPAL NOT TO APPLY. —The executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a). "(iii) 5 EQUAL INSTALLMENTS ALLOWED.— For purposes of applying subsection (a)(1), '5' shall be substituted for '10'. "(B) DEFINITIONS.—For purposes of this paragraph— "(i) QUALIFYING LENDING AND FINANCE BUSINESS. — The term 'qualifying lending and finance business' means a lending and finance business, if— "(I) based on all the facts and circumstances immediately before the date of the decedent's death, there was substantial activity with respect to the lending and finance business, or "(II) during at least 3 of the 5 taxable years ending before the date of the decedent's death, such business had at least 1 full-time employee substantially all of whose services were the active management of such business, 10 full-time, nonowner employees substantially all of whose services were directly related to such business, and $5,000,000 in gross receipts from activities described in clause (ii). "(ii) LENDING AND FINANCE BUSINESS. —The term 'lending and finance business' means a trade or business of— "(I) making loans,
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