"SMF" <smfwdf[at]comcast.net> wrote:

- quote -

it would be a gift - at the fmv of the business
would need to address gift tax issues

- quote -

could keep the same name
would need new ein

- quote -

would need to check box on 941 & appropriate notification
for state payroll taxes

- quote -

need to determine the fmv of the business one thing would be
goodwill

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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SMF <smfwdf[at]comcast.net> wrote:

- quote -

He can. But it would be better to have the business
appraised first. That way you can justify not paying gift
tax if the value is under the exempt amount.

If the value is over the exempt amount, you can sell it to
him and forgive the payments as they come due.

- quote -

The name is an asset of the company, so you can certainly
transfer it to him along with other company assets.

Stu

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Family appraisal business. Father would like to turn it
over to son who has been employee of business. Business has
been opperated as a sole proprietor - Schedule C. The only
assets are office equipment with a FMV of $5000. He would
like to just give it to the son. Questions:

1. Can the father just give it to him?
2. Can the son keep the same name and just apply for a new
federal ID #?
3. There will be no more payroll now that he'll take a draw.
4. Any other pitfalls?

Thank you,

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >