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.
- posted 1 month ago
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