Never Sell Your Business To Your Kids  Sooner or later—as the
years spin by, the message becomes crystal clear—you must
transfer your business. And if you're typical, the transfer will
be made to one or more of your children.  Columns From: 8/1/1999
Modern Machine Shop,  Sooner or later—as the years spin by, the
message becomes crystal clear—you must transfer your business.
And if you're typical, the transfer will be made to one or more
of your children. What's the most common form of transfer? Hands
down, it's a sale of the business.  Let's follow the triple hit
to your family when you as a business owner (say Joe) sell to
your child (say Sam). Suppose Sam will pay Joe an amount equal
to the fair market value of the business over a period of years
plus interest.  The tax tragedy starts with Sam. Since he can't
deduct the cost of the stock from his current income, he is
forced to first earn the money, pay the tax and has only the
balance to pay Joe. That's TAX NUMBER ONE. By the way, a smart
tax move is to el