S Corporation Stock Transfer

Steven B. Gorin has just published a well-researched and thoughtful article entitled Transferring Ownership of Stock in an S Corporation, 61 J. Mo. B. 92 (2005).   The introduction to the article describes the article as follows:

Advising clients who own stock in S corporations is both rewarding and challenging. Because S corporations’ income generally is taxable to its shareholders rather than the corporations themselves, transfers of S stock to family members often can be done while incurring little or no gift or estate tax. On the other hand, tax laws limit the classes and ownership of stock in S corporations, which can complicate matters. This article discusses transferring stock to the next generation, providing equity-type incentives to key employees, tax issues in buy-sell agreements, and tax planning when trusts are or will become shareholders