Mississippi Code
Chapter 9 - Estate Tax
§ 27-9-8. Valuation of farm and closely held business property

1. On the date of the decedent's death, was being used for a qualified use, and
2. Was acquired from or passed from the decedent to a qualified heir of the decedent.
1. Such real property was owned by the decedent or a member of the decedent's family and used for a qualified use; and
2. There was material participation by the decedent or a member of the decedent's family in the operation of the farm or other business; and
1. The adjusted tax difference attributable to such interest; or
2. The excess of the amount realized with respect to the interest (or, in any case other than a sale or exchange at arm's length, the fair market value of the interest) over the value of the interest determined under subsection (1).
1. The excess of the value of such interest for purposes of this chapter, determined without regard to subsection (1), over the value of such interest determined under subsection (1), bears to:
2. A similar excess determined for all qualified real property.
1. The value determined under subsection (1) taken into account under (3)(b)(i)2 with respect to such portion shall be its pro rata share of such value of such interest; and
2. The adjusted tax difference attributable to the interest taken into account with respect to the transaction involving the second or any succeeding portion shall be reduced by the amount of the tax imposed by this subsection with respect to all prior transactions involving portions of such interest.
1. In the case of periods during which the property was held by the decedent, there was no material participation by the decedent or any member of his family in the operation of the farm or other business; and
2. In the case of periods during which the property was held by any qualified heir, there was no material participation by such qualified heir or any member of his family in the operation of the farm or other business.
2. The preparation (other than milling) of trees for market.
1. The excess of the average annual gross cash rental for comparable land used for farming purposes and located in the locality of such farm over the average annual state and local real estate taxes for such comparable land, by
2. The average annual effective interest rate for all new federal land bank loans. For purposes of the preceding sentence, each average annual computation shall be made on the basis of the five (5) most recent calendar years ending before the date of the decedent's death.
1. Where it is established that there is no comparable land from which the average annual gross cash rental may be determined, or
2. Where the executor elects to have the value of the farm for farming purposes determined under subsection (5)(g).