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Glossary · tax

§ 6166 installment payment election

In plain English

An IRS provision letting the estate tax attributable to a closely-held business be paid in installments over up to 14 years instead of 9 months after death.

Designed to prevent a forced sale of a family business to pay estate tax. Strict qualification rules — the business must exceed 35% of the adjusted gross estate and must be an active trade or business.

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§ 6166 installment payment election | Mister AMS