Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.
Can we pass our business down to our children for free without any tax consequences?
My husband is the sole proprietor of a business and I am the bookkeeper/receptionist. My two sons are HVAC techs and do the work that brings in the money. We are of retirement age and would like to just pass the business down to these sons instead of selling it to them. Would this be permissible with the IRS? Can we gift the business to them with no tax consequences to them or ourselves?