Sale of Family S- Corp

[VondenhogenBeaverHausen]

Facts:

Father owns a business as the sole S- Corp Share Holder.

Dad wants to give business to son.

Dad owns the real estate and will sell at fair market value. Building is NOT in the S-corp.

The business may be worth a few hundred thousdand. It is hard to value because it is family run.

What do we need to watch out for and what is the best way to transfer this business to the son?

Thanks.

[OldJack]

If fathers total estate (including the S-corp) is less than $2 million, have father just gift the stock to the son by signing the back of the stock to cancel and reissue a new shares certificate to the son. Father has to file gift tax return but there would be no gift or estate tax as a result of the transfer. Suggest the S-corp lawyer handle the transaction.