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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6227
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Transfer property from a sub s corporation(ownership 50/0/

Customer Question

transfer property from a sub s corporation(ownership 50/0/ father son) to another sub s (ownership 75% Son 25% dad). there are no liens on the property. is there a gift tax involved ?
JA: The accountant will know how to help. Is there anything else important you think the accountant should know?
Customer: thanks how
Submitted: 2 months ago.
Category: Tax
Expert:  Stephen G. replied 2 months ago.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Expert:  Stephen G. replied 2 months ago.

Who owns the Sub-S now? Is it 50/50 father & son?

It is doubtful that there would be a gift tax, but it is likely that a gift tax information return would be due.

However, it all depends upon what the value of the S-Corp is.

That would most likely have to be determined by a Business Valuation as the 25% interest would likely be more than $5,000. Further, there's likely a premium to be considered due to the control factor that the son would have.

There are ways to make the transfer to minimize the affect on the father's unified credit (for gift & estate tax) now the equivalent of $5,450,000. of lifetime/death tax free transfers in excess of the annual exclusions of $14,000. per recipient per year.

Steve G.

Expert:  Stephen G. replied 2 months ago.

Just checking in..............

I see you have had a chance to review my response.

Do you have any follow-up questions?

If not, I would appreciate it if you would take a moment to rate my response as that is the only way that I will receive my share of the payment you already made to the site. There is no extra charge for providing a rating for me.

Thanks very much,

Steve G.