A transfer or loan of property (other than restricted property) that is made at a given time by a person or partnership to another person or partnership, under certain conditions, and that is generally not considered to be a contribution to the trust.

Restricted property is property held by a person or a partnership, such as:

• a share of the capital stock of a closely held corporation (including a right to acquire such a share or property substituted for such a share or right), if the share or right was acquired by the person or partnership as part of a transaction or series of transactions under which a specified share of the capital stock of a closely held corporation was acquired:
  • by any person or partnership in exchange for or upon the conversion of a property,
  • for a cost that was less than its fair market value (FMV) at the time of the acquisition;
• a debt or other obligation of a closely held corporation (including a right to acquire a debt or other obligation), if the debt or obligation, or a property that is substituted for such a debt or obligation, became the property of the person or partnership as a part of a transaction or series of transactions under which a specified share of the capital stock of a closely held corporation was acquired:
  • by any person or partnership in exchange for or upon the conversion of a property,
  • for a cost that was less than its FMV at the time of the acquisition.