Scope of §2703 Limited to Sales Sample Clauses

Scope of §2703 Limited to Sales. Reg §25.2703-1(2)(ii) says that a §2703 restriction is: “any restriction on the right to sell or use the property.” Why is the term “sell” used here? Why was the term, “transfer”, not used here as it is in §2701, §2702, §2704(b), and in numerous other places in the Code relating to estate and gift tax, such as §2036, §2037, and §2038? Does the term “sell” mean a sale for full and adequate consideration? Literally, it does not include a gift and perhaps may not include a bargain sale at below fair market value. Could the entity agreement permit a sale, but then require that any sale at below fair market value or any gift must be approved by the entity and/or other equityholders?
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