Tax planning for the efficient transfer of the business cannot be done in a vacuum. There are a multitude of tax considerations to keep in mind when attempting to quantify the tax costs involved in the business transfer.

Certain methods of transfer are less costly than others from a tax perspective. What is an effective plan from an estate or gift tax point of view may not be so efficient when viewed in the context of personal income tax. Additionally, what most benefits the family may not necessarily be the wisest alternative for the business.

Forbes