Story thread · 2 reports / 2 sources

He Sold the Company to His Son for a Promissory Note at the Rate the IRS Publishes. Every December He Forgave One Year’s Payment. Nine Years Later the Business Was the Son’s and the IRS Never Received a Gift-Tax Return

247wallst.com · 4d · first reportShare

Selling a family business to your child without gift tax sounds impossible, but a decades-old IRS-sanctioned structure makes it work. The catch is that one small misstep transforms the whole arrangement into a single taxable gift, with penalties attached.