Estate and Gift Tax Amendments of 1979

Estate and Gift Tax Amendments of 1979 - Amends the Internal Revenue Code to provide an unlimited marital deduction for estate and gift tax purposes.

Increases from 50 percent to 65 percent the amount of the adjusted value of a gross estate which a qualified farm property must constitute before the special use valuation for farms and other closely held businesses is applicable to such estate. Eliminates the "material participation" requirements for the application of such special use valuation. Repeals the $500,000 limitation on the reduction of the value of qualified real property permitted for application of the special use valuation.

Reduces from 15 to ten years the length of time a qualified property must be held following decedent's death before it can be sold or otherwise disposed of without incurring a recapture of estate tax benefits. Exempts from such recapture requirements any exchange of qualified real property, within the ten year period, for other qualified real property.

Repeals the requirement that an heir elect special treatment for involuntary conversions of qualified real property, thus making such treatment automatic upon such a conversion.

Provides for valuation of qualified real property for estate tax purposes on the basis of net share rentals (the excess of the value of the produce received by the lessor of the land over the cash operating expenses of growing such produce), whenever the average gross cash rental basis would be inappropriate.

Increases from $3,000 to $6,000 the annual gift tax exclusion. Includes only the excess of such exclusion in the value of the gross estate of a decedent where the gift was made within three years before such decedent's death.