When and How to Use ESOPs with S Corps

When Congress set up the rules allowing S corporations to form employee stock ownership plans (ESOPs), it cut out one of the best tax planning opportunities available to C corps-the tax free roll over of the gain in the corporation’s stock value when the stock is sold to an ESOP. In Chapter 15 of the new edition of CCH’s Practical Guide to S Corporations, author Michael Schlesinger, J.D., LL.M., notes that there are still important considerations and instances where an S corp can potentially find tax advantages with ESOPs. Schlesinger outlines the use of ESOPs and shows practitioners through the opportunities and potential pitfalls in his chapter on ESOPs and S corps.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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