Prompt: You are an associate in a boutique tax consulting firm that specializes in the real estate industry. You have been assigned to work with a client who needs advice on the tax implications of his business holdings, which include Skyscrapers, a commercial real estate firm organized as a sole proprietorship with a fair market value of $1 billion. He is considering transferring partial ownership of the Skyscrapers to both of his children and selling a 10% interest to an unrelated third party.

III. Tables and Calculations: Excel Documentation

A. Assess the amount of the clients cash that will be consumed by the proposed strategy over the next 24 months in order to the pay gift tax. Consider how the strategy maximizes the amount of transferred wealth to the clients children.

B. Analyze the personal income tax consequences and value over the next 24 months as a result of the overall proposed tax strategy. Given the income tax consequences, conclude whether or not the strategy is worthwhile and is ethically sound. Consider justifying the strategy in comparison to an alternative transaction.