Sure. It definitely comes into play. Sometimes it's not even that the sale is to the third party; it's that it creates awkwardness in the family dynamic since often individuals will come in assuming that their capital gains exemption is on the table. They've operated their business for 25 years. They've grown it up. They've heard about the capital gains exemption over their career, and they come in and say, “Okay, I'm ready to sell to my child, realize my capital gains exemption, and retire,” to which you tell them, “If you sell to your children, you cannot.” If the children are in the room at the same time, it creates an awkward situation, because now you're pinning the family business and how it's treated against the mom and dad's exit from the business.
On March 9th, 2021. See this statement in context.