Tax Reform Act of 1997

Known as P.L. 105-34, among other things this Act: reduced the maximum long term capital gains tax rate to 20% from 28%, but required taxpayers to hold asset for more than 18 months (as opposed to more than one year) for LTCG treatment; established a new estate tax exclusion for family owned business interests; indexed the GST exemption to inflation under Section 2631; and improved gift tax certainty by providing that, if a gift is adequately disclosed in a gift tax return (including attachments), the value of the gift may not be redetermined after the three-year SOL period.