The value of a gift of a business may be reduced if the interest given to any individual, including a child of the donor, is a minority interest in that business. This would apply whether the business was a Corporation, a Limited Liability Company or a Limited Partnership. If Dad owns a business worth $150,000 and had five children, he could give $20,000 of that business to each of his children. Dad is giving away 2/3rd of the business. However, the children would each receive a minority interest, and would not have to value the interest at $20,000, but could take a reasonable discount. This discount could be up to 30-40%, reducing the gift for tax purposes to $12-14,000. A licensed appraiser following the Internal Revenue Service’s rules would have to determine what price a reasonable buyer and a reasonable seller would arrive at under all the circumstances. Please note that there are many considerations, and if there is debt attached to the asset transferred, this could cause special problems. These types of transactions are scrutinized fairly closely by the IRS. For this reason, any form of gift discounting should only be done in conjunction with an estate planning attorney and a licensed business appraiser.