potentially abusive situation
(3) Fair market value rule in potentially abusive situations (A) In general In the case of any potentially abusive situation, the imputed principal amount of any debt instrument received in exchange for property shall be the fair market value of such property adjusted to take into account other consideration involved in the transaction. (B) Potentially abusive situation defined For purposes of subparagraph (A), the term “potentially abusive situation” means— (i) a tax shelter (as defined in section 6662(d)(2)(C)(ii) ), and (ii) any other situation which, by reason of— (I) recent sales transactions, (II) nonrecourse financing, (III) financing with a term in excess of the economic life of the property, or (IV) other circumstances, is of a type which the Secretary specifies by regulations as having potential for tax avoidance.