Here are two client tax stories, with almost identical facts, describing transfer of a family business to the kids. One caused a financial-tax train wreck; the second a tax-free victory. If you own all or a portion of a closely held business and are about to, or will someday, sell or transfer your interest in the business to one or more family members or employees, read this article carefully. You'll learn the wrong and right way to make the transfer and literally save more taxes-income, capital gains and estate combined-than the actual fair market value of your business interest being transferred.
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