Father wants to transfer ownership of his corporation to his children.
To avoid gift tax it will be a purchase for fair market value, on an
installment sale with payments due that are under the gift tax
exemption amount. Payments are contemplated to be forgiven, but
taxable income will be recognized on forgiven interest.
My question is whether the father will have to recognize taxable capital gain when he forgives the installments?
Thanks for any insight you have.
My question is whether the father will have to recognize taxable capital gain when he forgives the installments?
Thanks for any insight you have.
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Stu
http://DownToEarthLawyer.com
Stu
http://DownToEarthLawyer.com
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