Grant of Easement in Family Farm Triggers Section 2032A Recapture Tax: Estate of Gibbs v. United States

In Estate of Gibbs v. United States, the U.S. Court of Appeals for the Third Circuit held that the grant of a development easement to the State of New Jersey constituted a disposition of an interest in the taxpayer's family farm and triggered a recapture of estate taxes under section 2032A. Gibbs is the first published decision to construe the "disposes of any interest" language in section 2032A(c)(1)(A). ...

Joy M. Hodge