USA Selling S corp & tax basis

[spyshot]

Im looking to sell my S corp. shares to my daughter so i may retire. Im told by my accoutant that my tax basis will basically be transfered to her because: 1. Im selling to relation 2. I still plan on being employed by the S corp after the stock sale. So im being told that i will lose my basis, and she will gain that basis for tax purposes. I want to read up on this. Can someone suggest some documentation that i can read?

Thanks for your time on this

Jerry

 

[Ferdi]

It is not a must. If you want to transfer the basis, then you qualify. But if you do not, there is a simple way not to transfer the basis.