Tag: Dividends

ESOP Participant Distributions

Focusing now on ESOP distributions to existing participants, the law extends considerable flexibility.  When a participant leaves because of retirement, death or disability, benefits must commence in the year following the triggering event and continue in equal increments for up more »

ESOP Dividend Deductions

C corporations can deduct dividends when those dividends are paid on stock that was acquired by the ESOP with stock acquisition debt and are used to (a) pay down that debt, (b) passed through the ESOP to its participants, or more »

ESOP: Tax-Free Rollover of Gain

1. IRC §1042’s Genesis. Senator Russell Long, as Chairman of the Senate Finance committee, was instrumental in adding IRC §1042 to the Code in order to equate employees with publicly traded companies that can acquire maturing closely held corporations tax-free more »