PUBLIC LAW 98-369—JULY 18, 1984 ^' •
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(b)
98 STAT. 1025
subparagraph (A) shall be treated as voting stock to the extent that voting stock in the holding company owns directly (or through the voting stock of 1 or more other holding companies) voting stock in the business company. "(D) DEFINITIONS.—For purposes of this paragraph— "(i) HOLDING COMPANY.—The term 'holding company' means any corporation holding stock in another corporation. "(ii) BUSINESS COMPANY.—The term 'business company' means any corporation carrying on a trade or business." DEFERRAL OF ESTATE TAXES NOT AVAILABLE FOR PASSIVE
ASSETS.—Subsection (b) of section 6166 is amended by adding at the 26 USC 6166. end thereof the following new paragraph: "(9) DEFERRAL NOT AVAILABLE FOR PASSIVE ASSETS.—
"(A) IN GENERAL.—For purposes of subsection (a)(1) and determining the closely held business amount (but not for purposes of subsection (g)), the value of any interest in a closely held business shall not include the value of that portion of such interest which is attributable to passive assets held by the business. "(B) PASSIVE ASSET DEFINED.—For purposes of this paragraph— "(i) IN GENERAL.—The term 'passive asset' means any asset other than an asset used in carrying on a trade or business. •'• "(ii) STOCK TREATED AS PASSIVE ASSET.—The term 'passive asset' includes any stock in another corporation unless— "(I) such stock is treated as held by the decedent by reason of an election under paragraph (8), and "(II) such stock qualified under subsection (a)(1). "(iii) EXCEPTION FOR ACTIVE CORPORATIONS.—If— "(I) a corporation owns 20 percent or more in •f-^i/c- '.): - , value of the voting stock of another corporation, or such other corporation has 15 or fewer shareholders, and "(II) 80 percent or more of the value of the assets of each such corporation is attributable to assets used in carrying on a trade or business, then such corporations shall be treated as 1 corporation for purposes of clause (ii). For purposes of applying subclause (II) to the corporation holding the stock of the other corporation, such stock shall not be taken into account." (c) ACCELERATION OF PAYMENT.—Paragraph (1) of section 6166(g) (relating to disposition of interest; withdrawal of funds from business) is amended by adding at the end thereof the following new subparagraphs: "(E) CHANGES IN INTEREST IN HOLDING COMPANY.—If any
stock in a holding company is treated as stock in a business company by reason of subsection (b)(8)(A)— "(i) any disposition of any interest in such stock in such holding company which was included in determining the gross estate of the decedent, or "(ii) any withdrawal of any money or other property from such holding company attributable to any interest
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